The GBP/USD pair remains be in the grip of Brexit details negotiations between London and the European Union.
This week, the British Pound is bound to the news relating to the Brexit. On Monday, a new phase of negotiations between the UK and the EU started, and, as a result, the Pound may remain pretty volatile at least until Wednesday night. The current quote for the GBP/USD pair is 1.3446.
Discussions relating to monetary compensations to be paid by the United Kingdom to the European Union for its failure to perform obligations towards the alliance seemed to start very positively. At least, Theresa May, the British Prime Minister, said so. According to her words, there was visible progress in the negotiations. It’s very essential that the financial issues are solved until the end of the year, better if prior to December 14th. In this case, in early 2018 politicians would be able to start working on the legislative framework. We remind you that on December 14th the European Union summit will start and attention of politicians and investors will switch to it.
However, this positive momentum for the Pound was ruined by Jean-Claude Juncker, the President of the European Commission. He said that all necessary consensuses with the United Kingdom wouldn’t be reached at the beginning of the week. According to his words, it might happen by the time the summit started, at the earliest. It’s okay for the European Union, but not okay for London, which is obviously becoming some kind of target for implementation of all financial ambitions of the EU. Of course, the Brexit issue won’t make any progress without flexibility of the British politicians, but as the negotiations continue, it is becoming obvious that greatest challenges are still ahead.
Today’s statistics on the Retails Sales in the United Kingdom from the BRC showed that the indicator added 0.6% y/y. It’s much better than the leading indicator was. Still, the Pound barely reacted to the report: investors attention is focused on the Brexit.
RoboForex Analytical Department