Euro Gains But Pound Falls Further on Hard Brexit Worry
The Euro gained slightly against the Dollar and the Pound Friday, and strongly against the Japanese Yen, traders noticed the debate on the ECB’s accommodating monetary policy.
At the start of the US session, the British pound declined sharply against the Euro to 87.55 pence for one euro, but falls were also seen against the greenback, to 1.2163 dollars.
The Swiss Franc gained modestly against the euro at 1.0727 and more significantly against the Dollar to 1.0073 francs, versus 1.0083 francs per dollar the day before.
Several leaders of the European Central Bank refused, at the meeting of 7 and 8 December, any additional support for the Eurozone, revealed an official document published on Thursday, leaving premise for lively debates in the future on inflation which could influence a future monetary policy less favorable to the economy and more rewarding for investments in euros.
In the United States, retail sales rose 0.6% in December, disappointing analysts who expected a rise of 0.7%. Producer prices rose in December by 0.3% as expected by analysts. These statistics prevented the dollar from recovering after the declines of the previous days, according to market sources.
In the United Kingdom, the pound fell again yesterday afternoon, with markets focusing on confirmation that Theresa May will give more details on the government’s strategy for the Brexit in a speech on Tuesday.
Fear of a hard Brexit have prevailed as Ms May commented “the UK cannot cling to” bits and pieces “of its membership of the European Union” causing the pound to lose ground against most of its major crosses.
Theresa May had hinted Sunday that she would give priority to immigration control from the European Union on unfettered access to the European single market in the negotiations on the Brexit.