The Pound is very volatile. Overview for 03.10.2019

The British Pound has been pretty volatile recently; however, there is more to come.

The British Pound is very volatile against the USD on Thursday. The current quote for the instrument is 1.2293.

It’s all about the Brexit nuances, which are moving to the forefront these days. So, the EU's Chief Negotiator for the United Kingdom Exiting the European Union Michel Barnier said yesterday that there was visible progress in negotiations. The United Kingdom offered Brussels several suggestions, but they had to be fully canvassed. Barnier once again emphasized that the European Union wouldn’t accept any no-deal Brexit scenarios. 

As for London, they also mentioned that there was progress in Brexit talks and the country was ready to discuss everything in detail. 

The statistics published today showed that the Services PMI dropped to 49.5 points in September after being 50.6 points the month before and against the expected reading of 50.3 points. The decline below the psychologically crucial level of 50 points says that market sentiments in the sector, which is very sensitive to consumer demand, are getting more pessimistic. It’s a very bad signal for the British Pound and economy.