Pound sterling has fallen to the 7-week low
On Tuesday the pound sterling comparing to the US dollar demonstrated a seven-week low with the approaching of the British exit from the EU. However, the House of lords is still trying to prevent this process, delaying the adoption of the regulating principles for the implementation of the Brexit laws. Meanwhile, the U.S. dollar continues to gradually raise by the investors’ expectations about interest rates increase by the FRS.
According to John Hardy, Saxo Bank’s chief analyst, the main catalyst of the market movements this week is the ECB meeting, after which it will become clearer whether the forecasts about the interest rate increase by the European Central Bank are justified. At the moment, the probability of this is 50:50.