The Pound updated its three weeks lows. Overview for 24.12.2019
GBPUSD stopped falling, but remains week.
The British Pound slowed down its decline against the USD on Tuesday. The current quote for the instrument is 1.2944.
This week, there will be no important statistics for the British Pound: today it’s Christmas eve, tomorrow – Christmas itself, that’s why British markets will be closed until Thursday.
However, market players are really concerned about the Brexit. At the moment, when the Conservative Party and the country’s Prime Minister Boris Johnson are “set loose” in making the Brexit decisions, chances of the “hardcore” exiting scenario are rising. It means that the United Kingdom may exit the European Union until January 31st, 2020 without caring whether it has a trade agreement with the alliance or not. Euphoria was quickly replaced by routine, because Tory may really ignore common sense in favor of completing the Brexit as soon as possible. In the meantime, investors are pretty clear-eyed about the risks and see all possible problems that may follow the exiting procedure.
What exactly alerted them? The fact that the British policymakers insist on a special article in the Brexit agreement that makes the English judicial law dominating over the European one. The alliance may not agree to it and Johnson may jeopardize the talks and threaten to exit the Union without the agreement.
Under such conditions, the Pound may remain under pressure for a long time, which prevents it from getting back to 1.30.