The GBP/USD pair is trading downwards; the Brexit negotiations results aren’t impressive so far.
On Thursday, the British Pound remains under pressure against the USD. The current quote for the instrument is 1.3380.
It’s all about politics again. The Brexit negotiations between the European Union and the United Kingdom representatives continue this week. Right now, they don’t have much to make investors happy: financial issues of the Brexit procedure are still being discussed very slowly.
Instead of this, one can clearly see that Theresa May is once again under significant pressure from other political parties of the United Kingdom. The main problem is that London wants to remain a participant of the single European market and the European Customs Union after exiting the European Union. In order to deliver this, May has to make the European Union feel very comfortable during the negotiations. She manages to do it, but not always.
Not everybody in the government are positive-minded. Philip Hammond, the British Chancellor of the Exchequer, told the media this week that the United Kingdom should consider the scenario with exiting the European Customs Union as the main one, despite its intention to stay there. He thought it was logical. Moreover, Hammond is sure that the United Kingdom has to pay the EU as much as they want, because it seems right.
Friday will be a very busy day for the Pound due to a lot of statistical reports to be published. If fundamental news is able to “beat” political drivers, the Pound will likely recover, because from the macroeconomic point of view, the United Kingdom is doing fine.
RoboForex Analytical Department
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.