The Pound rose strongly during the day following the announcement of an agreement on Brexit. The pound hit a one-week high against the US dollar reaching 1.2925, and against all of its rivals rallied more than 100 pips.
Both sides in the European Union and the United Kingdom are seeking to end the agreement before next Sunday's summit. The British Prime Minister Theresa May delivered a speech before Parliament today confirming that the agreement is the right one for UK before she will return to Brussels on Saturday.
The draft of the May agreement has met strong opposition in the recent period, due to outstanding issues such as the political declaration on Gibraltar and the Irish border and other problems related to fishing and trade links to the future. According to the draft declaration the transition period can extend for one or two years.
The euro tried as far as possible to maintain its gains that made today, trading higher than 1.14, the euro rose about 0.4% following the news about a deal on the Brexit, but the uncertainty remains on the Italian budget, which puts some pressure on the single currency.
On the other hand, the dollar fell against a basket of currencies, but it is still trading above uptrend line that we mentioned yesterday as well as higher than 96. This decline followed market uncertainty about how often the Fed will raise rates after Trump has asked Fed to stop rates hike.
Oil prices fell slightly today after US inventories rose to their highest levels since December last week, raising fears of rising oil supplies as markets await OPEC next month and the possibility of cut production.
