Brexit negotiations weigh on GBP

The pound largely softened last week, with markets reading between the lines of the latest economic data releases to find the negatives behind the positive headline figures.

GBP/EUR slumped to €1.07 this week, while GBP/USD climbed to US$1.2963.

There isn’t a huge amount on the UK data calendar this week, but market focus is likely to be on the ongoing Brexit negotiations.

GBP remains close to worst levels

The pound was largely on soft form last week, although there were occasional sources of support that helped Sterling temporarily claw back losses. Overall, however, markets were nervous ahead of the resumption of Brexit negotiations this week.

EUR rises despite lack of ECB policy clues

The euro was able to record gains last week, although its progress was far from smooth. Data releases seesawed between positive and negative, but markets were largely focussed on two speeches from European Central Bank (ECB) President Mario Draghi.

USD weakens as odds of December rate hike worsen

The US dollar spent much of last week on sluggish form ahead of Friday’s key speech from Federal Reserve Chair Janet Yellen. Odds of an interest rate hike in December remained uninspiring, weighing on USD.

AUD and NZD fluctuate after Jackson Hole comments

The potential for key US and Eurozone central banker speeches to significantly alter demand for USD and EUR weighed on AUD and NZD last week, keeping the commodity-correlated pair muted for much of the week.