The euro and the pound sterling have managed to remain above their dramatic troughs experienced post-Brexit, although their long-term trajectory is still questionable, with the current impression of stability much attributable to a brief period of short-covering.
The pound is now at $1.3326, slightly higher than the low on Monday, while the euro has also risen, presently fixed at $1.10735. Against the pound, the euro remains close to its Monday high, trading at 82.89 pence.
Despite the lull and current period of respite, this reassurance may only be short lived; the pound could reach significant lows again over the coming months as the exit procedure and negotiations begin to take shape.
The dollar was also on the rise, stabilizing at 102.63 yen, climbing away from its low related to the trade volatility spurred by the UK referendum results last Friday.
Japan in the meantime is pressing the central bank to provide generous funds to the market in concerns over liquidity. Great caution is expected from investors due to apprehension about the impact of the Brexit on global economies.
The severe attacks in Turkey on Tuesday at Istanbul’s busiest airport did not affect the Turkish lira, which remained largely unchanged, trading at 2.9030 to the dollar.
The post Long-term outlook for sterling, euro shaky despite current lull appeared first on FXTM Blog.