The previously promised 40-45 billion euro from the UK, to pay for Brexit come with one additional condition and it is that this amount will be available on EU accounts only if a trade agreement is signed between the two parties. May's statement, along with the forthcoming Bank of England default rate, sent pounds down, with GBP -0.32% down in the minutes before the end of the day.
Despite the backward pace of the Brexit talks, the GBP remains relatively stable, trading with normal volatility. First of all, investors are cautious considering the forthcoming Bank Of England meeting, and on the other hand GBP is supported on the background of the progress in the negotiations on Northern Ireland.
We remain in anticipation of Bank of England's decision and considering the high inflation and partial progress of Brexit over the past few weeks, we expect central bankers to change their tone and a few increases next year. In spite of the temporary turmoil in the UK, we remain Long on GBP, and any such statement that causes the currency to adjust will be used to add to the long positions.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.