Tuesday, October 20, 2020

Euro Currency, Pound Look For Opportunity To Rise Higher Again!

 The pound sterling traded flat following investors taking precautions while awaiting the latest developments in UK and European Union (EU) trade negotiations.

Uncertainty in talks to reach an agreement faded after UK Prime Minister Boris Johnson said there was no point in continuing negotiations with the EU unless it was willing to compromise on key issues.

However, talks between the two sides continue this week despite PM Johnson issuing such a statement.

Price movements also indicate that investors are more inclined towards the scenario that both parties will reach an agreement as was the case last year in the Brexit withdrawal agreement.

Meanwhile, euro trading is trying to rise even further as optimism over the US fiscal stimulus package has hampered demand for the US dollar.

The market is now focusing on any developments in the negotiations between Speaker of the House of Representatives Nancy Pelosi and Treasury Secretary Steven Mnuchin by the end of the term given by Pelosi.

Pelosi has given the White House time until Tuesday for them to decide whether an agreement can be reached before the November presidential election.

At the beginning of the European trading session, the euro rose 0.14% and traded around 1.17870 against the US dollar.