Brexit Briefing: EU Warning, Queen's Speech, Bank of England and GBP
GBP price, Brexit news and analysis:
- GBP/USD continues to trade sideways, ignoring a European Commission warning that a no-deal Brexit would hurt the UK more than the EU.
- In London, this session will be dominated by the Queen’s Speech setting out the Government’s policies and a Bank of England interest rate decision, but neither is likely to move Sterling.
GBP/USD to shrug off Government’s program and an interest rate decision
Two important events are on the UK calendar this session: the Queen’s Speech setting out the program for the Government and a Bank of England decision on monetary policy. However, neither is likely to jolt Sterling out of its recent narrow trading range.
GBP/USD Price Chart, One-Hour Timeframe (December 16-19, 2019)
Chart by IG (You can click on it for a larger image)
The Queen’s Speech will likely contain many of the measures in the ruling Conservative Party’s winning General Election manifesto, including its decision to leave the EU at the end of next month, while the Bank of England will likely keep all its monetary settings where they are.
European Commission warns on no-deal Brexit
These events will follow a warning earlier this week by Ursula von der Leyen, the new President of the European Commission, that a cliff-edge Brexit at the end of next year, when the transition period ends, will hurt the UK more than the EU.
Speaking at the start of a debate in the European Parliament in Strasbourg,she noted that 11 months is “very little time” to reach a trade deal after UK Prime Minister Boris Johnson’s decision to legislate against an extension of the transition period beyond the end of next year
We look at Sterling regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts
--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.