AIRLINK 200.02 Increased By ▲ 6.46 (3.34%)
BOP 10.23 Increased By ▲ 0.28 (2.81%)
CNERGY 7.83 Decreased By ▼ -0.10 (-1.26%)
FCCL 40.00 Decreased By ▼ -0.65 (-1.6%)
FFL 16.80 Decreased By ▼ -0.06 (-0.36%)
FLYNG 26.50 Decreased By ▼ -1.25 (-4.5%)
HUBC 132.79 Increased By ▲ 0.21 (0.16%)
HUMNL 13.99 Increased By ▲ 0.10 (0.72%)
KEL 4.67 Increased By ▲ 0.07 (1.52%)
KOSM 6.57 Decreased By ▼ -0.05 (-0.76%)
MLCF 46.66 Decreased By ▼ -0.94 (-1.97%)
OGDC 211.89 Decreased By ▼ -2.02 (-0.94%)
PACE 6.89 Decreased By ▼ -0.04 (-0.58%)
PAEL 41.34 Increased By ▲ 0.10 (0.24%)
PIAHCLA 17.02 Decreased By ▼ -0.13 (-0.76%)
PIBTL 8.13 Decreased By ▼ -0.28 (-3.33%)
POWER 9.37 Decreased By ▼ -0.27 (-2.8%)
PPL 181.45 Decreased By ▼ -0.90 (-0.49%)
PRL 41.60 Decreased By ▼ -0.36 (-0.86%)
PTC 24.69 Decreased By ▼ -0.21 (-0.84%)
SEARL 112.25 Increased By ▲ 5.41 (5.06%)
SILK 1.00 Increased By ▲ 0.01 (1.01%)
SSGC 44.00 Increased By ▲ 3.90 (9.73%)
SYM 19.18 Increased By ▲ 1.71 (9.79%)
TELE 8.91 Increased By ▲ 0.07 (0.79%)
TPLP 12.90 Increased By ▲ 0.15 (1.18%)
TRG 67.40 Increased By ▲ 0.45 (0.67%)
WAVESAPP 11.45 Increased By ▲ 0.12 (1.06%)
WTL 1.78 Decreased By ▼ -0.01 (-0.56%)
YOUW 4.00 Decreased By ▼ -0.07 (-1.72%)
BR100 12,170 Increased By 125.6 (1.04%)
BR30 36,589 Increased By 8.6 (0.02%)
KSE100 114,880 Increased By 842.7 (0.74%)
KSE30 36,125 Increased By 330.6 (0.92%)

Sterling edged up against the dollar and euro in a quiet day of trading on Wednesday, with investors cautious about taking on large new positions on the currency ahead of the Christmas holiday and phase two of the Brexit talks next year. With thin trading and little economic data to shift interest elsewhere, focus on the next round of divorce negotiations between Britain and the European Union left the pound unable to break outside of the ranges it has traded in over the past two weeks despite some progress in Brexit talks.
The European Union wants a transition period after Brexit to end no later than the last day of 2020, according to the European Commission's negotiating directives agreed on Wednesday. The BBC reported on Wednesday that the Bank of England will allow European banks to continue selling their services in the United Kingdom without having to create expensive subsidiaries after Britain leaves the EU, giving sterling some marginal support.
"While I think sterling may recover slightly into the year-end, all the optimistic talk can't cover up the inherent impossibility of the contradictory wishes of the British side. I think sterling is still a long-term short," said ACLS Global strategist Marshall Gittler. Prime Minister Theresa May last week secured a deal to move negotiations to the next stage, so that post-Brexit trade and a transition arrangement can be discussed.
She told her cabinet on Tuesday that Britain's objective in leaving the EU should be a deal that enables it to set rules suited to its situation. Sterling edged up 0.2 percent on the day to $1.3406. Against the euro, it inched up 0.1 percent to 88.37 pence.
MUFG currency strategist Lee Hardman said the Office for National Statistics' confirmation on Tuesday that UK labour costs are on the rise bolstered the bank's view that the Bank of England will raise rates next year earlier than the market expects. "Our bullish view for the pound is based on our expectation that the MPC (monetary policy committee) will have to raise rates twice next year and the market is barely priced for one increase," Hardman wrote, adding that MUFG expects a hike in May.
Earlier on Wednesday, a survey showing fewer British employers plan to hire extra staff next year due to one of the gloomiest economic outlooks since the vote for Brexit in June 2016 had little impact on the pound.

Comments

Comments are closed.