British Pound (GBP) Latest: GBP/USD Focus on Election, Brexit, Bank of England
GBP price, Brexit news and analysis:
- Near-term, the results of the US elections will be the principal driver of GBP/USD but traders also need to watch out for developments in the post-Brexit trade talks and on Thursday’s meeting of the Bank of England’s monetary policy committee.
- Reports suggest that progress is being made in the EU-UK talks, while the BoE will likely increase its bond-buying program.
GBP/USD at the mercy of the US electorate
In particular, the EU-UK talks on their relationship once the Brexit transition period ends on December 31 could at last be making progress, with reports suggesting there could be a breakthrough on the contentious subject of fishing. The US-UK talks are also reported to be making progress and both these developments are potentially positive for GBP/USD after its recent decline.
GBP/USD Price Chart, One-Hour Timeframe (October 20 – November 3, 2020)
Chart by IG (You can click on it for a larger image)
This week’s meeting of the Bank of England’s monetary policy committee is expected to end Thursday with a decision to increase the BoE’s bond-buying program by around £100 billion, taking the total to £825 billion – a potential negative for GBP/USD.
However, if such a decision is reached it could be seen as a clear and timely response to the UK national lockdown due to begin this week and could therefore be welcomed by the markets, helping GBP/USD recover some of the ground lost in recent days and bring the 1.30 level back in sight.
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--- Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.