PM May Helps Boost Outlook For GBP

The GBP Rises on Expectations of a Comprehensive Brexit Deal

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Ongoing Brexit negotiations have caused significant volatility with the GBP and its major trading partners. The UK has officially initiated Brexit discussions with its EU partners. Brexit Secretary, David Davis and Prime Minister Theresa May are working with their European partners to hammer out the most comprehensive deal possible. Currency traders are eagerly following the process, and hedging their bets by placing call or put options on the sterling accordingly. The latest short-term movement in the GBP/USD pair has been bullish.

Speculators are buoyed by Prime Minister May’s commitment to tackle the hard issues upfront. European negotiators are concerned about the rights of EU citizens currently living in the United Kingdom. Britons voted against remaining in the EU, owing to immigration-related concerns. The UK has been pushing an agenda of limiting immigration to 100,000 people per annum, significantly lower than its current level of approximately 250,000. This has given European legislators pause, for they fear the rights of European citizens may be infringed by Brexit proceedings. The negotiations state that the UK will grant a grace period to EU citizens, including those already in the UK. After 5 years of permanent residence in the UK, EU citizens will have the same rights as UK citizens.

British Prime Minister Extends Olive Branch to EU Leaders

Binary options currency traders are encouraged by the positive news, and the sterling rose accordingly. At last count, the GBP/USD pair rallied towards 1.2740, up 0.48% on Friday, 23 June 2017. Prime Minister Theresa May offered reassurances to the European community after a meeting in Brussels.

Her statement read as follows: ‘… The United Kingdom’s position represents a fair and serious offer… One aimed at giving as much certainty as possible to citizens who have settled in the United Kingdom… Building careers and lives and contributing so much to our society.’

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