The Pound recovered and is ready to embrace a landmark year. Overview for 31.12.2019
GBPUSD reached stability at the end of the year but 2020 is anticipated to be as volatile as 2019.
By the end of 2019, the British Pound managed to pull itself out of a dive but the upcoming year is very unlikely to be easy for the British currency.
As early as at the beginning of January, the British Parliament will face a difficult task to ratify the agreement with the European Union. The Brexit deadline is January 31st, 2020 and if the exiting procedure fails to feature a somewhat proper trade agreement, the national currency will certainly suffer from stress.
The Bank of England is not expected to introduce any significant changes to its monetary policy in 2020, at least in the first six months. Most likely, the British regulator will continue watching the Brexit and talks with the European Union relating to the second phase of the exiting procedure.
The first BoE meeting is scheduled for January 31st, 2020. It’s not clear whether it is a coincidence or not, but looks pretty symbolical.
Moreover, in January the BoE Governor Mark Carney will be replaced by Andrew Bailey, the Chief Executive Officer of the Financial Conduct Authority. Basically, Bailey is not expected to significantly change the monetary policy of the British regulator, at least in winter. The future remains to be seen.
Everything that is going to have a significant influence on the British currency is the Brexit and the Brexit alone. In this light, macroeconomic reports to be published by the United Kingdom go on the back burner. So, if the exiting procedure goes off without a hitch, the Pound will remain standing.