Sterling starts the week vulnerable to the credit-rating downgrade of the U.K and the restarting of U.K.- European Union divorce talks that begin in Brussels on Monday.
While traders were disappointed with Prime Minister Theresa May’s Brexit speech on Friday — sending the pound down against the dollar for the first week in five — she sounded a more conciliatory tone and proposed accepting the EU’s rules for two years after Britain leaves the bloc. “While prospects of a two- year transitional period pose upside risks to our year-end pound-dollar and euro-pound forecasts of 1.33 and 0.90 respectively, we are reluctant to revise these until we see greater strides toward a transition deal being signed, sealed and deliver,” said Viraj Patel, currency strategist at ING Groep NV.
Source: Bloomberg Pro Terminal
Trader Bozhidar Arabadzhiev
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