GBPUSD has been trading to the downside for the sixth consecutive trading session; the Brexit concerns are pulling the Pound down.
The British Pound continues falling against the USD on Tuesday. The current quote for the instrument is 1.2841.
There will be Inflation Report Hearings in the British Parliament today, but the news related to this meeting will go public later in the afternoon. Right now, investors are still worried about the Brexit: the closer the date of exiting is, the more alarming the situation becomes.
According to Reuters, there is a 25% possibility that the United Kingdom may exit the European Union without concluding a trade agreement. This is exactly the “rough” Brexit scenario, which was discussed so much and which Theresa May and her Cabinet are trying to avoid. Negotiations on trade relations for both parties for the following two years (starting March 2019) are put on hold over and over again due to the lack of mutual understanding between them. The European Union is trying to “drain the UK dry”, while the latter believes that undertaken obligations are too much and doesn’t want to accept more. This is what has become a stumbling point for European and British politicians.
Following these events closely, economists are trying to predict the Bank of England’s future moves relating to benchmark rate. Consensus forecast says that the British regulator may increase the rate up to 1.0% next spring and then continue keep it that way.