The Pound is holding out hope for political consensus. Overview for 20.10.2020

GBPUSD rose pretty much yesterday but lost its momentum by Tuesday morning.

On Tuesday morning, the British Pound is saving strengths against the USD. The current quote for the instrument is 1.2940.

Yesterday’s trading session was quite successful for the Pound. Market players are keeping a close eye on talks between the United Kingdom and the European Union on different nuances of their trade relations and holding a hope that policymakers can save their arrangements after all. Yesterday, the UK said that there was still time for negotiating and the door was open if the EU was ready to make some concessions. However, if the alliance doesn’t move an inch toward, Brexit will still happen in 10 days, without any agreements. 

Here one can easily see the policy lobbied by the cabinet of the country’s Prime Minister Boris Johnson. The United Kingdom is currently putting great pressure upon the European Union although the country itself was the party that dragged out the negotiations and got after every small detail. It has to be said that the agreement is necessary for both parties and Johnson, with his all-British confidence of being right, is marching ahead. It does not necessarily mean that his government will be satisfied with agreement-less Brexit because such an outcome may complicate things for the British business in the first place. However, in case there are no other options, Johnson will choose this one. 

The earliest important statistics for the Pound will be published on Wednesday, that’s why today the market is going to move in response to the data received earlier.