GBP Soars, Euro Resilient, while USD Softens

MARKET DEVELOPMENT – GBP SOARS, EURO RESILIENT, USD SOFTER

GBP: The Pound is the clear outperformer in today’s session, which initially soared to one-week highs above 1.29, following reports that the EU-UK have agreed on future ties post Brexit. However, GBP shortly pared some of the initial strength as key issues still remain. A lack over clarity regarding Gibraltar has seen Spanish sources suggesting that they will not back the agreement, consequently, providing some uncertainty ahead of the EU summit on Sunday. That said, the biggest and most important hurdle that PM May faces is the meaningful vote, and as it stands chances remain slim that the deal will be passed through parliament, which would not only raise the risk of the UK crashing out of the EU, but also lead to a leadership contest in Theresa May. GBP will continue to face an uncertain future in the near term. As such, GBP gains will likely be yet again faded.

EUR: The Euro is holding above the 1.14 handle, which has been provided a slight boost from the latest Brexit headlines. However, topside resistance from 1.1430-40 where $1.1bln of vanilla options are

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/us_am_briefing/2018/11/22/GBP-Soars-Euro-Resilient-while-USD-Softens--US-Market-Open.html