The British pound gained during the day after reaching near its lowest level since the beginning of the month at 1.2832 following the optimistic statements by a British government minister about the possibility of reaching a deal within the next 24 or 48 hours.
Sterling hit its highest level since the beginning of the week at 1.2958, also after British wages rose to their highest level in 10 years, as wages excluding bonuses up by 3.2%, while wages including bonuses rose by 3% in the three months to September. Markets are looking ahead to UK inflation data tomorrow, which slowed in August to 2.4%.
Against the Euro, the Sterling is still trading near its highest level in almost seven months, as the EURGBP is trading at 0.8700 levels.
Also, the Euro rose from a 16-month low against the US dollar after optimism about the Brexit negotiations, but there are still concerns about the Italian budget, especially after sticking to the deficit target in 2019 at 2.4% after the European Commission deadline for budget review ended today.
The Euro is expected to return to test the broken strong support at 1.13 before pulling back and targeting 1.12/1.1180.
Oil prices fell for the 12th day in a row, with US crude hitting its lowest level since February 14 at $ 58.23 a barrel, while Brent crude hit its lowest level since April 9 at $ 68.14 a barrel.
In its monthly report, OPEC warned of a global oversupply in 2019 amid a global economic slowdown and an oversupply of non-OPEC competitors faster than expected, and OPEC now talking about a further cut in output after increased it.
