(19 SEPTEMBER 2018)DAILY MARKET BRIEF 3:GBP optimism ahead of Brexit meeting

Ahead of today’s meeting in Salzburg, sterling is strengthening, currently trading along 1.3205 USD and approaching the 1.3215 range in the short-term. At stake is whether the pound will benefit or not. This depends on EU’s view: many disparities remain, and the October deadline looms. We think the markets might be over-optimistic. The Bank of England will watch closely. Inflation is at its highest pace in 18 months, which could trigger a rate hike.

By Vincent Mivelaz