UK-EU Trade Talks Put Pressure on GBPUSD and Other GBP Related Currencies

  • The UK-EU trade talks have been the highlight of the British pound for several days in a row. However, it seems that both the UK and the EU aren’t budging. The two nations are now at a standoff with neither one of them willing to make a compromise on their policies.

     

    The Latest News on the Trade Talks

    As per the latest discussion between both parties, both the UK and the EU did not  come up with any progress regarding the various aspects that they were supposed to discuss. Due to that, the GBP suffered quite a hit as well as the EUR.

    This week, we can expect the  UK to draft a legal text in order for the members of the EU to go over the details on how the UK wants to reset the trade talks of both nations. The short term movement of the GBP will depend on what the content of the legal letters are and what the reaction of the EU members and third parties is.

    According to Andy Haldane, head economist of the Bank of England, the central bank is planning to exhaust all possible options to keep the economy of the UK afloat. These options may include negative interest rates or the purchasing of more high risk assets. Haldane also mentioned in an interview that the economy is significantly weaker than what it was last year which is why the country’s case is being dealt with much urgency.

     

    The Current Status of the GBP

    Right now, the Sterling is facing bearish pressure, especially against the USD. Should the shorts of the USD unwind in the coming week, we can expect to see a drop in the GBPUSD pair. This all really depends on the macro news from the side of UK. Pessimistic news will bring down the currency lower while more optimistic news will keep it afloat.

     

     

    Risk Disclaimer:

    Information on this page are solely for educational purposes only and is not in any way a recommendation to buy or sell certain assets. You should do your own thorough research before investing in any type of asset. Learn to Trade does not fully guarantee that this information is free from errors or misstatements. It also does not guarantee that the information is completely timely. Investing in the Foreign Exchange Market involves a great deal of risk which may result in the loss of a portion or your full investment. All risks, losses and costs associated with investing, including total loss of principal and emotional distress, are your responsibility.

     

     

Due to COVID 19 outbreak, we have transitioned everything ONLINE. This is to make sure there is zero impact on your safety, security and still maximize your learning experiences with Learn to Trade.

You can close this pop-up to see all our online schedules.