Sterling falls after Brexit comments, stocks rise

British Prime Minister Boris Johnson said on Thursday there was “a strong possibility” Britain and the EU would fail to strike a trade deal. His words were ignored, and equities continued to rise, with the FTSE 100 index climbing to nine-month highs.

On the other hand, the GBPUSD pair fell notably, but it remains in a bullish trend, and it is very likely the dip will be bought amid the broad US dollar weakness.

The ECB increased its pandemic bond-buying program by 500 billion EUR, and the central bank also extended its duration. As it was not dovish enough, the EURUSD pair rose, and precious metals fell. 

There are no important macro data on the agenda today, apart from the US Michigan consumer confidence index, which is expected to decrease slightly. 

In commodities, the WTI oil continues to perform well, despite the worsening global economic situation, and it pushed to nine-month highs, trading at around 47 USD a barrel. It looks like the 50 USD level will be hit pretty soon. On the other hand, precious metals continue in their miserable performance, and investors ignore rising inflation expectations, a weaker dollar, and more stimulus by central banks. 

Source: https://www.axiory.com/market-news/sterling-falls-after-brexit-comments-stocks-rise