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Home / World / After the EU Brexit olive branch, some fear that optimistic pounds sterling might be "washed away"

After the EU Brexit olive branch, some fear that optimistic pounds sterling might be "washed away"



The dollar rose against its main rivals on Thursday, moving up against the British pound as analysts spoke more skeptically about an olive branch of the European Union's best negotiator.

EU negotiator Michel Barnier said Wednesday that the trading bloc is ready to offer the United Kingdom an unprecedented partnership that will give the pound a big boost for this session.

His comments have helped alleviate concerns about the potential for a no-deal-brexit, which is a disorderly UK move away from the EU without an agreement on future trade relations.

But some analysts on Thursday were not (19659002) "It is unlikely that there will be a perfect deal that will satisfy both the EU Member States and the UK Parliament," said Josh Mahony, a market analyst IG, in a note.

Friday Meeting

Friday's meeting between Barnier and British Brexit Secretary Dominic Raab "will provide significant volatility for the pound as we close the week," Mahony added. "There is a great chance that the optimistic optimism that has been seen over the past 24 hours will be washed away if the talks continue to face the same obstacles."

Read more: Prepare for a no-deal Brexit: 5 areas that investors should consider

And see: A CEO of a top London-listed company the biggest Brexit threat to its industry

"We've heard that kind of language in the past"

Barnier's "gentler language will be positive, but A) There's still skepticism about what that means with a few Details on that, and B) We've heard that kind of language in the past, "said Neil Wilson, market analyst for Markets.com, in one note.

Sterling

GBPUSD, -0.0998%

bought $ 1.3013, slightly less than $ 1.3028 late Wednesday in New York.

The ICE US Dollar Index

DXY, + 0.09%

increased from 94,569 to 94,651.

The euro

EURUSD, -0.1452%

last traded at 116.94 USD, declined slightly compared to 1.1709 USD late Wednesday, while the dollar

USDJPY, -0.15%

bought 111.58 yen against 111.68 yen.

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