GBP/USD Sees Strongest Performance in October Since 2016 on Brexit Deal Optimism
A day after the last Brexit deadline, the Pound continues to make gains against the dollar as the risks of a no-deal Brexit fade and the UK readies itself for early elections in December. At the time of writing, GBP/USD is trading at around 1.295.
October was one of the best months in a long time for GBP/USD as it gained more than 5.3% on optimism of PM Boris Johnson reaching a new Brexit deal with the EU and then getting an extension on the Brexit deadline. While uncertainty reigns high, markets celebrated the silver lining of the diminishing possibility of a disruptive, hard Brexit which could have left UK’s economy in turmoil.
As the December 12 date for early elections nears, the European media caution that any further political uncertainty could only make the Brexit situation worse. While Johnson insisted on elections as a means to garner more support for his latest Brexit deal, if the Conservatives don’t get the majority, how Britain will depart from the EU becomes even more uncertain.
Meanwhile, US President Donald Trump criticized the latest version of the Brexit deal, stating that it could restrict UK’s chances of a free trade agreement with the US after Brexit. In an interview with BBC, Trump remarked, “To be honest with you… this deal… under certain aspects of the (Brexit) deal… you can’t do it, you can’t do it, you can’t trade.”
ABOUT THE AUTHOR
See More
Add 3442
Related Posts
Add 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals
Top Broker