On Thursday afternoon, GBPUSD is trying to keep its positive momentum despite negative newsflow.
The British Pound continues strengthening against the USD on Thursday. the current quote for the instrument is 1.2972.
The CB Leading Index in the UK showed no changes in December after being +0.2% m/m in the previous month. In fact, the report supports other macroeconomic readings published earlier and confirms that the British economy was slowing down at the end of 2019.
The Pound, however, manages to ignore today’s negative newsflow, which includes, first of all, new rumors on the Chinses coronavirus (new cases of the virus outbreak are reported), and Boris Johnson’s tough stance on the European Union’s regulations. Throughout the transition period, London has to adhere to the same regulations and laws as before, but Johnson disagrees.
What is meant here is an escalation of transportation tariffs for heavy transport. Johnson’s stance is different from the EU’s, thus setting up an imbalance for foreign businesses in the Area because the tariffs are higher for them. The European Union representatives have already warned the UK about bringing the matter before the European Court of Justice unless the tariffs are lowered within two months.
London’s overwhelming desire to play only by its own rules is a great risk for the Pound: right now. it’s not the time for that.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.