Forex Sky Eye APP News: On Thursday (October 17), the pound/USD hovered around 1.2755. Affected by positive news about Brexit in , the pound soared sharply on the previous trading day to hit 1.2875, and then pulled slightly from this point. The exchange rate has suddenly accelerated and fell by nearly 100 points from the day high to 1.2748.
htmlThe latest news came from the UK's Brexit within 1 day. The Democratic Unified Party of Northern Ireland (DUP) said it could not support the current agreement's recommendations on tariffs and consent forms, and there was also a lack of clarity on the issue of value-added tax, and would continue to cooperate with the government.Affected by this news, the pound/US fell rapidly in the short term by about 70 points, reaching a low of 1.2748.
As the October 31 deadline approaches, British Prime Minister Johnson is working on his last move. European Council President Tusk said the latest statement that the situation of Brexit is expected to become clear within hours and that the Brexit agreement may be passed on October 17.
needs to continue to pay attention to the latest progress in Brexit. If the two sides reach an agreement, the market's risk of a no-deal Brexit in the UK will cool down significantly, and the pound may further soar. On the contrary, if the two sides fail to reach an agreement, or are rejected by British Parliament after reaching an agreement, the Brexit deadlock will usher in greater uncertainty and the pound may be sold violently.
For the future trend prospects of the GBP/USD, the latest article by FXStreet analyst Haresh Menghani in the day, making brief technical analysis and predictions. The main content of its views is as follows:
The pound/dollar surged sharply in the previous trading day and hit a high of 1.2875, the highest level in five months. After that, the exchange rate began a moderate retracement from this point, and is currently accelerating to a low of 1.2748.
On Wednesday, in a series of Brexit-related news reports, the pound/dollar quickly reversed the trend of falling to 1.2655 on the same day, broke through the 1.2800 mark, and set a new high since mid-May. The initial decline was triggered by less optimistic remarks from a British official who said the government was pessimistic about the possibility of a Brexit deal.
reports have been reported that technical Brexit negotiations have reached a deadlock, and the EU believes that a Brexit agreement is impossible unless the UK takes action, and these reports further suppress the pound. Meanwhile, the UK inflation data released on Wednesday was slightly disappointing, but this had little impact on the two-way fluctuations of the pound that day.
However, French President Macron said the Brexit deal is being finalized, providing a much-needed respite for long pound investors. German Chancellor Angela Merkel has also further strengthened this view. She said the Brexit negotiations have entered the final stage, which further pushed up the pound exchange rate.
In addition, it has been reported that the main obstacles to the agreement between the UK and the EU have been eliminated, and Democratic Unification Party has accepted the latest proposal for Brexit, which has a boost to the pound. In addition, against the backdrop of the increased expectations of the Federal Reserve's interest rate cut, the widespread tendency to sell the US dollar further fueled the rise of GBP/USD on the day by more than 200 points.
Currently, the pound/dollar appears to have entered a downward consolidation phase, with investors not making any additional bullish bets ahead of the crucial EU summit on Thursday-Friday, and this meeting may effectively determine whether the UK will leave the EU by reaching an agreement on October 31.
