GBPUSD continues falling on Tuesday morning; investors are afraid of the Brexit complications.
On Tuesday morning, the British Pound remains weak against the USD. The current quote for the instrument is 1.3234.
Investors’ undivided attention is focused on the Brexit talks. The issue escalated once again and the reason was resignation of David Davis, the British Secretary of State for Exiting the European Union. Davis made a stand against the strategy, which the British Prime Minister Theresa May and her supporters were holding firm to and wasn’t happy that the “soft” exiting plan was approved without his participation.
The thing is that May fronts for the “soft” Brexit, which implies keeping business and trading relations with the European Union. It would be good for the British enterprises both during the transition period and after it. There hasn’t been anything like this in the British history before, that’s why the country may face a lot of obstacles. May was trying to make the country safe from any possible consequences while Davis was in favor of a “tougher” way.
Davis’ position was taken over by Dominic Raab, who had time in the past to work with both Davis and his political opponent Dominic Grieve (he was always in favor of keeping the United Kingdom in the European Union). Probably, assigning Raab to this position might help May to find more support in the British government.
Later, there will be a lot of reports from the UK, such as the Manufacturing Production, the Industrial Production, the Construction Output, the Goods Trade Balance, and the GDP, which means that the Pound will surely find some reasons for active movements during today’s trading session.