On the first day on March, GBPUSD is trading to the downside close to the levels it reached on January 15th.
The British Pound continues falling against the USD on Thursday. The current quote for the instrument is 1.3760, the worst over the last month and a half.
The main catalyst, which has been against the Pound for the last couple of days, is the strong USD. However, the Pound could have easily stood against the American Dollar if there had been no complications with the Brexit.
The other day, the European Commission published the draft of the document relating to the United Kingdom’s exiting the European Union. The draft says that during the transition period the UK might have no access to the single European market. Apart from this, agreement on Ireland (the borders issue) will be effective only after the Brexit transition period is over.
Such conditions are very negative for the United Kingdom. Theresa May and her supporters had been “fighting” the European Union politicians over the transition period conditions for several months, that’s why this draft may be considered as a step back and a waste of time for both parties.
As a result, this information is very negative for the Pound, and probably for mid-term at least.
Orgin: RoboForex
