The pound has started the new week how it ended the last one: weak. The latest slide has been in response to comments from UK Prime Minister Theresa May at the weekend, when she said Britain’s exit negotiations will “not be about keeping bits of membership.” May’s comments suggest it will be a hard exit from the European Union, as Britain seeks to control immigration and law-making among other things.
The markets did not move much since yesterday. We still see a lot of corrective price action across the board that will make U.S. dolalr even stronger in sessions ahead, while stocks stay in an uptrend.
On the daily chart of the U.S. dollar/Swiss franc (USD/CHF) currency pair we are looking at a higher degree complex correction, a three wave A-B-C rise, that seems to be in action since end of December of 2014.
The U.S. dollar hit a more than two-week high against a basket of major currencies today after U.S. inflation data boosted bets the Federal Reserve would raise interest rates in December, and touched a one-month high against sterling on worries over Britain's Brexit vote.