The GBP/USD is increasingly Nervous About brexit

The GBP price, brexit, news and analysis:

• The GBP/USD is falling on Thursday, after a week of gains, the June 30 deadline for the united KINGDOM to apply for an extension of its “brexit” transition period approaches.
• Until now, there has been little progress in this week in the UK from the EU, the discussions on a post-brexit trade, but the BRITISH Prime Minister, has promised not to request a speaking to the strike to prevent the united KINGDOM from the conclusion of the transition period, at the end of the year, without a trade agreement.
• A new survey has suggested that the GBP will weaken if no extension is requested.

The GBP/USD is facing brexit risk

Talks are planned this week between the united KINGDOM and the EU over an agreement that will govern the exchanges between them, once the post-brexit the transition period ends at the end of this year, continue to show some signs of progress. However, there is still no indication that the BRITISH government will request an extension of the talks is to prevent the transition period from the end without a trade agreement.

The deadline for the united KINGDOM, to request an extension to June 30, and it is feared that if the united KINGDOM does not, it will be necessary to trade with the EU under the rules of the World Trade Organization, since the beginning of the next year, and that the prospect would be likely to weaken the pound sterling.

The GBP/USD Price Chart Daily Schedule (February 17 – June 4, 2020)

Chart provided by the IG (You can click it to enlarge the image)

As the above chart shows that the pair GBP/USD has been on the rise, as a group, or corona virus lock, in the hope of a global economic recovery and continued central bank stimulus, which has attracted investors from the so-called risky assets such as equities and currencies like the GBP, EUR, AUD.

However, if April 30 passes without a request for an extension of the GBP will likely fall back. Concerns about this were heightened Tuesday when the reserve Bank of india has said that commercial bthanks must prepare for the possibility ofno-deal, in the the a post-brexit trade negotiations. “It is fundamental for the Bank of England’s over it and that it prepares ” the UK financial system-for all the risks that it might face in the” the BoE said in a statement.

In addition, a poll conducted by the news agency Reuters, it has been suggested that Sterling is going to lose his the recent gains against the THE US Dollar and further weaken if in the united KINGDOM do not ask for an extension to its “brexit” transition period, by the June 30 is the deadline to allow more time for the talks on a trade agreement with the EU.

GBP/USD it is expected to have weakened to 1.23 by the end or June, according to the survey this week or more 50 foreign the exchange the policy-makers. However, the pair GBP/USD bear note also that any hint of an agreement which would be likely to lift the pair of new.

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— Written by Martin Essex, an Analyst and Editor

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