LATEST BREXIT DEVELOPMENT: POUND STERLING CURRENCY MOVEMENT IN THE FOCUS

14.12.2020
Market News
14th Dec. - The positive intonation of the latest BREXIT negotiations between the European Union and the United Kingdom on Sunday gave a new lease of life to the Great Britain Pound Sterling (GBP) currency this week.

Last week, the GBP recorded a sharp fall as BREXIT negotiations staged where no final word was reached by either side. 2 weeks of tense negotiations where both parties take a firm stand not to succumb to any pressure and remain with their respective demands.

However, last Sunday the two sides finally agreed to relax a bit of negotiations and agreed to find a point of peace as soon as possible and end this geopolitical drama that lasted almost 4 years.

EU Commission President Ursula von der Leyen in a recent official press release confirmed this was backed by United Kingdom Prime Minister Borris Johnson. The two agreed to continue negotiations and expect December 31 as the target period to reach the best consensus.

In terms of the value of the currencies involved, namely GBP and Euro, a few weeks ago recorded a strengthening of the Euro against GBP where the EUR / GBP pair soared for 3 consecutive weeks. At the beginning of November 2020, the EUR / GBP price was around 0.88700 and last week the price reached 0.92300.

In contrast to the GBP / USD pair, the GBP has appreciated against the US Dollar since March 2020. Significant weakness in the US Dollar has been evident since the Federal Reserve made a drastic decision to choose a weak monetary policy to stimulate the severely affected economy since the Covid-19 pandemic.

The GBP / USD pair is currently at the level of 1.32200 and is likely to continue to jump to the level of 1.3600, approaching the current level of BREXIT 2016.