FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews

Pound smashed by Brexit wrecking ball

8 December 2020

Anyone else feeling sorry for the British Pound? It was treated without mercy by G10 currencies today, falling more than 1% against the Dollar as deadlocked Brexit talks left investors empty-handed. As negotiations over the future trading relationship between the UK and EU remain on a knife-edge, fears are set to mount over a no-deal Brexit becoming reality.

UK Prime Minister Boris Johnson is expected to call EU President Ursula von der Leyen this evening after initially threatening to walk away from negotiations! While a successful outcome to the call could soothe tensions and open the doors to further talks, this all sounds too familiar. It must be kept in mind that the three outstanding topics of fisheries, level playing field rules, and governance remain unsolved. With both sides refusing to budge from their stand, the next few days promises to be filled with more drama and uncertainty.

Much attention will be directed towards the European Union summit on Thursday the 10th of December. For those who are banking on a potential breakthrough at the “eleventh-hour”, the two-day summit could present such an improbable opportunity. One of the greatest lessons from the Brexit saga is to always expect the unexpected – and this could hold as the series slowly comes to an end.

Outside of Brexit, the weather in the United Kingdom remains gloomy as usual - accompanied by a winter chill. The same can be said for the macroeconomic landscape. Although the UK has moved into its new tiered system of restrictions, early data suggests that a double-dip recession could be around the corner.

You might be wondering what this all means for the Pound which has surprisingly gained over 3% against the dollar this quarter?

Although the Pound has appreciated against the Dollar, it has weakened against practically every other G10 currency since the start of October. This confirms that the Pound’s upside has nothing to do with a change of sentiment towards the currency or UK economy but Dollar weakness.

Looking at the technicals, the GBPUSD remains bullish on the weekly charts. Prices have the potential to test 1.3482 if 1.3300 proves to be reliable support. A solid breakout above 1.3482 could open the doors towards 1.3500 and 1.3600.

On the daily charts, there is still hope for Pound bulls despite the currency pair experiencing its biggest one day drop in three months! It's all about where the GBPUSD closes today. A solid daily close above 1.3300 could inject bulls with some confidence to send prices back towards 1.3482. However, a daily close  under 1.3300 is likely to signal further downside with the next key level of interest around 1.3100.




Brent Crude has cleared its way for $100
Brent Crude has cleared its way for $100

The Gas Armageddon doesn’t look likely to leave Europe anytime soon, with its effects trickling more and more clearly into related markets. Brent crude updated...

28 Sep 2021

Strong Durable goods orders are bullish for USD
Strong Durable goods orders are bullish for USD

US Durable goods orders notably exceeded expectations (+0.7% m/m), adding 1.8% in August after rising 0.5% a month earlier. The rise here is a signal of confidence of US...

28 Sep 2021

Yen and tech stocks bleed as yields march higher
Yen and tech stocks bleed as yields march higher

The specter of rising interest rates has returned to haunt financial markets. The Fed breathed some life back into Treasury yields last week after it opened...

28 Sep 2021

S&P 500 H4: Bulls are in the reign
S&P 500 H4: Bulls are in the reign

The S&P 500 on the H4 time frame was in a down trend until a lower bottom was reached on 20 September at 4306.5. After the lower bottom, bulls gathered...

27 Sep 2021

Stocks up as markets look to Berlin & Washington
Stocks up as markets look to Berlin & Washington

Stocks are higher in early trade in Europe, with the DAX jumping 1% at the open as it looks as though Germany is heading for a traffic light coalition - more left, more green...

27 Sep 2021

No clear winner in German elections
No clear winner in German elections

Euro pulls back after inconclusive German election. Dollar balances faster Fed hikes against fading Evergrande fears. Wall Street and oil prices keep climbing ahead of busy week...

27 Sep 2021

Forex Forecasts

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.