GBP Boosted as Brexit Minister Signals Brexit deal by November 21st
GBP Analysis and Talking Points
- GBP Rises as Brexit Minister Signals that a Deal is Near
- Brexit Optimism Typically Faded
See our Q4 GBP forecast to learn what will drive the currency through the quarter.
GBP Rises as Brexit Minister Signals that a Deal is Near
The Pound sharply rose to session highs against the US Dollar, breaking above 1.28 and hitting highs of 1.2830 after Brexit Minister Raab stated in a letter that he would “give evidence to the Brexit committee when a deal is finalised, and currently expects November 21st to be suitable”. The Brexit Minister also noted that the UK and EU agree on the principle of a UK wide customs backstop, however, Raab highlights that while obstacles remain, the end is firmly in sight. In the meantime, this will likely fuel optimism ahead of a potential Brexit summit touted to be around November 17-18th.
Brexit Optimism Typically Faded
As has been the case previously, Brexit optimism has typically been faded and there is a possibility that this may be a similar scenario, given that the letter from Brexit Minister Raab is not only a week old, there is still an acknowledgement that differences between the EU and UK remain, while there is also no mention on the type of Brexit deal (Hard or Soft Brexit). Alongside this, EU Barnier has yet to state anything on the matter. As such, until a tangible deal is made, optimism may continue to be faded.
GBPUSD Price Chart: Intra-day Time Frame (October 31st)
Chart by IG
Additional Brexit Analysis
- How does a leadership challenge to a UK Prime Minister work?
- Brexit Effect on Pound and UK Stocks: Impact of Deal or No Deal
- See our quarterly GBP forecast to learn what will drive prices through mid-year!
- Just getting started? See our beginners’ guide for FX traders
- Having trouble with your strategy? Here’s the #1 mistake that traders make
--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.