Sterling makes gains following news on Irish Border Deal

Will today's cabinet meeting result in a clearer path to Brexit?

Sterling has made gains against the USD and is now sitting above the 1.30 mark. This was due to an Irish border deal coming close to fruition, one of the major sticking points in getting a Brexit deal sewn up.

A lack of clarity surrounding Brexit has kept the pound anchored at low levels, pre-Brexit GBP/USD sat above 1.40. News on the Irish border is definitely positive news and I think a deal may well be agreed in the coming weeks. If that is the case expect sterling to make significant gains.

The US dollar has been going from strength to strength against the majority of major currencies. Despite the US waging trade wars across the globe the US dollar is still gaining value. Usually a trade war would result in the currency in question weakening, with the greenback this is not the case. In times of global economic uncertainty investors leave riskier commodity based currencies in favour of safe haven currencies. The US dollar is the destination of choice due to its safety and high returns. We did see a rate hike from the Federal Reserve last week from 2% to 2.25% and there is anticipated to another before the close of the year.

If you are selling US dollars I would be taking advantage of current levels; if a Brexit deal comes through I think we could see a significant rally for sterling.

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