The approach Brekzita fever pound

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The coming months will be most interesting for fans to trade the British pound. This currency has always been the most popular asset among currency speculators. And in a recent issue of a British exit from the EU even more spurred the volatility of the pound sterling. Immediately after the announcement of the results of the referendum, the pound fell against the dollar by 8%. Since then any news on the situation around Brekzita causes movement of the pound in either direction.
Now market participants are nervous and sensitive to the comments of officials and report on the progress of negotiations. Last week, the pound surged 200 points after the promises of the representative of the EC Michel Barnier to continue our partnership with Britain after Brekzita. He expressed such in the past, but the market did not react. The last time both sides of the negotiations do not exclude the possibility of the withdrawal of Britain from the European Union without an agreement. UK even is preparing the necessary measures for this outcome.
Although such a scenario is unlikely, but the possibility is still pressuring the pound. To March 2019 there is still time, but any agreement must be approved by the British Parliament. And here the position of Prime Minister Theresa may is not very strong, as even in the conservative party there are opponents of its policy. In late September the Congress of party representatives, the results of which will also affect the pound.
Pre-termination negotiations on the withdrawal of Britain was scheduled for the end of October. However, there were reports that this deadline could be postponed. In addition, if negotiations are not completed the transaction on October 31, that will be an extra EU summit in November and December. Each of the upcoming events will be accompanied by fluctuations in the exchange rate of the British currency.
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Yevgeny Abramovich
Analyst
Forex broker FXOpen