GBP price, news and analysis:
- The British Pound may well continue to strengthen after UK Prime Minister Theresa May’s decision to take personal control of Brexit negotiations with the EU.
- As the UK Parliament prepares for its Summer break, fears of Brexit-related job losses in London are receding.T
- The latest UK economic figures look positive too.
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GBP price, news and analysis:
A rally in GBPUSD over the last few trading sessions could extend further as pessimism about the Brexit negotiations between the UK and the EU recedes.
This week, UK Prime Minister Theresa May said she will now lead the talks in what has been seen as a downgrading of the importance of the UK government’s Brexit department. “I will lead the negotiations with the European Union, with the Secretary of State for Exiting the European Union [Dominic Raab] deputizing on my behalf,” May said in a written statement to parliament.
This is no game changer. Former UK Chancellor George Osborne commented in a tweet: “News? Who was in charge before?” However, the statement has helped the Pound, which has climbed for several successive sessions.
GBPUSD Price Chart, Hourly Timeframe (July 18-25, 2018)
Volatility in GBP could also ease as the UK Parliament begins its six-week Summer break, reducing the potential for negative Brexit-related headlines.
Meanwhile, the latest UK economic data look reasonably positive. UK mortgage approvals hit a 19-month high in June, according to the UK Finance trade body.
Fears of Brexit-related job losses look overdone too. Fewer than 5,000 financial jobs might move out of Britain by “Day One” of Brexit and future relocations will depend on new trading terms with the European Union, Bank of England Deputy Governor Sam Woods told the Bloomberg newsagency Wednesday.
The chairman of Barclays was relatively upbeat too. “Britain's banking industry will emerge largely unscathed from Brexit and retain its position as one of the world's top two financial centers for the foreseeable future, John McFarlane told Reuters.
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--- Written by Martin Essex, Analyst and Editor
Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex
