GBP gains, EUR sentiment wanes

GBP continues its decent performance, and today was boosted, GBP/EUR gaining to 1.1260 and GBP/USD 60 points higher at 1.2350:

British Prime Minister (PM) Boris Johnson spokesman told the lawmakers on Thursday that they want to make progress on the Brexit deal with the EU as quickly as possible and noted that there is an expectation that they want the details of the deal agreed in advance of the EU summit on the 17th and the 18th of October.

"Talks with the EU will continue, the PM's EU adviser Frost to have further talks in the next 24 hours," the spokesman announced. "We have to get parliament behind the deal, and get that across to the EU."

 As always, we can find an immediate counter-view from the EU, reported on Reuters, below. However, GBP will always like the push towards a deal, lessening the immediate chaos that Brexit could cause. However, many are sceptical that the UK will in a positive place in the medium term, with or with ‘a deal’.

Reuters: More talks between both sides’ Brexit negotiators are due on Friday but the bloc has already made it clear Johnson’s plans - which principally involve arrangments for the border between EU member Ireland and the British province of Northern Ireland - are nowhere close to unlocking a deal.

 EUR: I quote from FXStreet & Reuters articles here, showing how negative sentiment surround the Eurozone economy:

ECB Governing Council member Ignazio Visco crossed the wires in the last minutes saying that the economic situation has worsened in the eurozone and that they cannot risk losing the control of inflation expectations, per Reuters.

 "Deflationary risks are not acceptable in the situation of high private and public debt," Visco added. The shared currency ignored these comments. As of writing, EUR/USD was virtually unchanged on the day at 1.0960 and GBP/EUR was 50 points higher at 1.1260

 USD: Trade conflict continues, but the market is waiting for tomorrow’s all-important employment data from the USA. After poor data earlier this week (Manufacturing data reported the lowest level in many years), this afternoons service-sector data is all important after US Consumer Confidence also fell last month. This recent spate of poor data has not yet started a trend, but it isn’t far away, and I continues, will justify the previous rate cuts, and possibly inspire more cuts in the future, potentially weighing on the USD.