- Brexit negotiations continue ahead of the European Council meeting.
- GBP/USD holds 1.2900 as markets assume a deal will be agreed
UK PM Boris Johnson and EC President Ursula von der Leyen spoke over the weekend in an attempt to inject momentum into negotiations. UK PM Johnson said he wants a deal, but the UK could still prosper without a trade deal. Regular communication between the two leaders is expected going forwards.
The British government reiterated the need for progress before October 15 The European Council meeting on October 15-16 will assess what progress has been made. If sufficient progress has been made then negotiators will have until early-November to get the deal done.
Brexit optimism is priced-into the Pound as noted by Goldman Sachs. The investment bank said that while a breakdown of talks is still possible, the baseline view is that a basic EU/UK trade deal will be agreed by early November.
GBP/USD holds 1.2900 however, there are several points of resistance that need to be broken through up to 1.3008 to before the bearish trend is negated. Immediate support is at the 20-dma 1.2860. Further gains could be favoured.
Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.
