The Pound continues falling. Overview for 19.12.2019
On Thursday morning, GBPUSD is moving downwards; the correction is getting deeper.
The British Pound continues falling against the USD on Thursday morning. The current quote for the instrument is 1.3081.
Investors continue following the Brexit and have concerns that the United Kingdom may leave the alliance with the “hardcore” scenario, which implies no trading conditions because it might be impossible to discuss all nuances of trade relations between the parties in 11 months of the transition period. Probably, policymakers will be able to define some key points, but not much else. That’s what is keeping market players on the edge, because it may cut the United Kingdom off the European trade routes.
Today, the Bank of England is scheduled to have its last meeting this year. The interest rate is expected to remain unchanged at 0.75%. As a rule, the British regulator is pretty conservative when it comes to making monetary decisions and prefers to take its time when applying fiscal tools. Most likely, the BoE will decide to wait and see how the Brexit procedure unravels and make decisions only after that.
In addition to that, the United Kingdom is going to report on the Retail Sales which is expected to recover by 0.3% m/m in November after losing 0.1% m/m the month before. Also, investors are expecting the CBI Realized Sales in December. It looks like the Pound is going to have a quite volatile day.