Sterling reached an 11-week high, the euro is preparing to fall

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Pound updated the 11-week high after The Sun reported that the Democratic Unionist Party of Northern Ireland privately decided to offer conditional support to the deal of Prime Minister Theresa May. This week, the pound rose about 1.8 percent, above the key psychological level of 1.30 dollars in the hope of a Brexit deal.

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The Sun's article raised the pound by 0.4 percent, to $ 1.3114, its highest since November 8. In relation to the euro, sterling rose by 0.25 percent, to 0.8631 euro, and by 0.35 percent in relation to the Australian dollar, to 1.8478. If the British press does not lie, the pound is likely to rise to 1.32 dollars, if we take into account the technical analysis, then a breakthrough to 1.38 dollars is possible.

The euro rose 0.1 percent to $ 1.1321, although the long-term outlook for the single currency looks bleak. The ECB expects growth to decline in Europe, predicting weaker than expected growth.

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So, in the near future, the euro will be inferior to its peers, as it is expected that monetary policy in the eurozone this year will remain adaptive. The dollar also faces a difficult year, as economic growth in the country and around the world is under pressure, and the Fed is preparing to pause its rate hike cycle.

The material has been provided by InstaForex Company - www.instaforex.com