GBPUSD is rising; the asset doesn’t seem to worry about the breakdown of the “soft” Brexit scenario so far.
On Wednesday, the British Pound is strengthening against the USD. The current quote for the instrument is 1.3270.
It goes without saying that the weak American Dollar offers the Pound a lot of reasons and grounds for strengthening but the current fundamental background remains rather alarming for the British currency and investors may have to deal with it in the prices later.
The British Prime Minister Boris Johnson said yesterday that he wasn’t completely sure if the Cabinet of the United Kingdom would get a deal with the European Union policymakers regarding the trade agreement. Johnson believes that there isn’t much time left and it looks like the Cabinet of the United Kingdom is facing this problem for the first time.
The British policymakers do not change their stance: the United Kingdom is still not willing to go against its interests and back-pedal on the border issue. The European Union, in its turn, is sick and tired of the British stubbornness and just waiting for the end of the whole story. Johnson is speaking of the need for keeping the state sovereignty and protecting the British interests when it comes to trade relations, fishing industry, and border aspects. The policymakers had a year to discuss these issues and right now, the time is running out.
In principle, they have one more week for active discussions because, after that, they won’t have time for ratification of all these things they might be ready to approve. The closer December, the higher the probability that the Brexit scenario will turn out to be a “hardcore” one after all. And that’s very powerful stress for the Pound.
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