Brexit Hopes Keep British Pound to Stop from Falling

The British pound rebounded strongly on Monday, pushing GBP/USD to 1.2929, its highest level in nearly a week. The pair buoyed by rising hopes for a trade deal between the UK and EU as diplomats from both economies headed into the ninth round of talks with cautious optimism. Trade talks on Brexit will resume on Tuesday. A spokesman of the British Prime Ministry stated that a deal is still possible while much remains to be done. The British currency found additional support in BOE’s Ramsden comments. Who dismissed the possibilities of using negative rates in the short term.

The UK macroeconomic calendar was empty earlier in the week and will provide some smaller numbers on Tuesday as the UK releases mortgage approvals and economic data for August.

The Dollar Falls on Hopes of a Tax Agreement in the United States

The United States dollar is going down in a risky mood. Talks between Republicans and Democrats continue in Washington, and House of Representatives Speaker Nancy Pelosi offers a new deal worth $2.2 trillion. 

The world is still concerned with the coronavirus. The total death toll globally has already peaked at 1 million. Infections are rapidly growing in Europe and the United States. 

The United States President Donald Trump and Democratic rival Joe Biden have plans to meet in the first presidential debate later. Trump is the weakest in the polls, but Biden is considered a worst debater. The narrative that will emerge from the event can move the markets. Investors remain bothered about the specter of an unfinished election.

Joe Biden has a four-in-five chance of beating Donald Trump.

Nate Silver’s FiveThirtyEight model shows a 76% chance of a Biden win. In comparison, The Economist’s forecast is 84% ​​for the Democrat, who is around seven points ahead of Trump on various averages in the national vote.