The Pound reached its four weeks highs. Overview for 26.02.2019

On Tuesday, GBPUSD continues growing; market players are discussing a possibility of another referendum. 

The British Pound continues rising against the USD on Tuesday. The current quote for the instrument is 1.3149.

Today’s attention is focused on the speech of Jeremy Corbyn, the Leader of the Labour Party and the Opposition, who said it was necessary to support another British referendum in case it took place. His fellow-members offered and supported this idea long before that and Corbyn seems to have finally given up.

He said that during the party conference they decided to make and support an amendment on holding another popular referendum in order to avoid destructive effect of the Brexit. It happened last September and now it is coming to the fore again.

By the way, Corbyn is a vocal opponent of the United Kingdom’s staying in the European Union. It appears that he supported the Brexit up to some moment, but later was forced to give up in the line of fire from his fellow-members. 

As early as tomorrow, on Wednesday February 27th, there will be one more voting in the British Parliament on the Brexit agreement, but it’s not clear now what amendments may be introduced. 

Later in the afternoon, there will be Inflation Report Hearings. As a rule, they feature speeches from the British policymakers about the inflation in the country and expectations for the future. The event takes place 4 times a year. According to the latest data, the Consumer Price Index in the United Kingdom in 2018 was 2.1% y/y. In January 2019, it decreased down to 1.9% y/y. the target of the Bank of England is 2.0%. 

If inflation targets are intact, which is expected, the Pound won’t pay much attention to the Hearings.