I’m ready for the question, Noel:
Dominic Raab’s last minute scramble over to Brussels this weekend left investors in great anticipation, perhaps even expectation, of a Brexit deal this week. Michel Barnier’s tweet yesterday afternoon undermined those expectations sending Sterling tumbling during the Asian open yesterday evening. The EU’s chief negotiator wrote:
Sterling crashed out of the 1.32s against the Dollar overnight, however, recovered ground throughout this afternoon. As May addressed the Commons, Sterling proved to be a choppy market to navigate, however, ultimately gained around one quarter of one percent as the PM’s optimism persuaded traders to award the Pound with value. The Euro was also hampered by the disappointing Brexit announcement on Sunday, with the European single currency losing its own battle against the Dollar and running out of steam just short of the 1.16 mark. Having unsuccessfully retested this range again this afternoon amidst a weaker Dollar, EURUSD closed the European session at 1.1590. European leaders gather in Brussels on Wednesday in a pivotal event for Brexit. Sentiment surrounding the event remains positive, with French President Macron promising in Paris this afternoon to continue “technical talks” right up to the wire. Global tension between Saudi Arabia and the US grew today as the oil titans squabbled on the political stage. Amidst a strong “risk-off” strategy, Gold rallied as the Dollar and US equities declined.
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Daily Brief – Bucking the trend
Charles Porter
Thu 5 Feb 2026
Bucking the trend The Aussie Dollar has broken out from recent ranges and is on a convincing upward trajectory. Post-Covid, the antipodean currencies, AUD and NZD, had found themselves a step ahead of the dominant global cycle shared between the likes of the UK, EU, and US economies. Over the past couple of years that […]
Daily Brief – A Dollar Vacuum
Charles Porter
Tue 27 Jan 2026
A Dollar Vacuum If you’ve ever heard the phrase, ‘a rising tide lifts all boats’, you already know everything you need about today’s FX market. That is provided of course you’re not trying to analyse the rising tide itself, in this case our US Dollar. The Dollar is the counter currency to most key pairs […]
Daily Brief – Renminbi Reserves?
Charles Porter
Tue 3 Feb 2026
Renminbi Reserves? The Dollar debasement debate hasn’t finished but should now take a breather whilst some stability has been restored to the currency. A combination of the nomination of Kevin Warsh, as we noted yesterday, as well as some robust US data are to thank for that recovery. To note here whilst on the subject, […]
