GBP/USD Waiting For Outcome Of EU-UK Trade Talks

GBP PRICE, BREXIT NEWS AND ANALYSIS:

  • GBP/USD looks to be stuck in a broad band between just under 1.33 and 1.3440 as the markets react to indications that the EU-UK talks on their relationship post-Brexit are making progress or are reaching deadlock.
  • French President Emmanuel Macron appears determined to take a hard line on fishing but UK Education Secretary Gavin Williamson and Irish Foreign Minister Simon Coveney both said Thursday that good progress is being made.

GBP/USD AT MERCY OF BREXIT HEADLINES

GBP/USD and the GBP crosses continue to be buffeted by headlines suggesting the EU-UK talks on their relationship once the Brexit transition period ends on December 31 are making progress or nearing breakdown. (FXB,UDN,UUP)

On one side, French President Emmanuel Macron continues to oppose any deal that blocks widespread access to UK waters for French fishermen. On the other, UK Education Secretary Gavin Williamson said Thursday that good progress is being made in the talks. Ireland’s Foreign Minister Simon Coveney was also optimistic, saying there is a good chance of a deal in the next few days.

 

That was broadly positive for GBP/USD, though it could easily be knocked down again by the next headline suggesting roadblocks remain.

GBP/USD PRICE CHART, ONE-HOUR TIMEFRAME (NOVEMBER 19 – DECEMBER 3, 2020)

Latest GBP/USD price chart.

Chart by IG 

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