On Wednesday, the GBP/USD pair returned the two weeks’ lows after the Brexit procedure was started.
The British Pound is falling against the USD on Wednesday. The current quote for the instrument is 1.2442; the daily low was at 1.2378.
So, the British government sent an official letter to Brussels, where they start the procedure of the country’s exiting the European Union. After the EU President, Donald Tusk, answers the letter, the Brexit procedure will be officially considered started. It is supposed that Theresa May, the British Prime Minister, will deliver her speech relating to this to the House of Commons later this evening.
As they say, waiting for the procedure to start was more troublesome that the procedure itself as the Brexit issues has been painful for the capital markets since June 2016. It seems that now investors will get some facts, which may be not as frightening as they expected.
Today’s statistical reports were rather mixed. The Mortgage Approvals in the United Kingdom in February was 68K after being 69K the month before and against expectations of 70K. At the same time, the Net Lending to Individuals in February is estimated at £4.9B after being £4.8B in January.
The market prefers not to pay attention to the statistics. Everybody is looking at Theresa May and waiting for her comments about the Brexit procedure details. It appears that the Pound is going to move before today’s trading session ends.
RoboForex Analytical Department