GBPUSD is staying positive; the Brexit news is good.
The British Pound continues growing against the USD on Tuesday. The current quote for the instrument is 1.3030.
The most important and positive news for the British currency is the comments from the European Chief Negotiator for the United Kingdom Exiting the European Union, Michel Barnier, that were published yesterday. Barnier said that the parties might really come to agreement on the Brexit in the next six-eight weeks. A bit earlier, the British Prime Minister Theresa May told the media that the Brexit talks might be successful as early as in October.
Why is it so important for the talks to progress so quickly? There is no time to spare as the United Kingdom has to exit the European Union in March 2019. It would be excellent for both parties to have general idea of trade relations and conditions effective for the transition period of the next 2 years. These very trade relations and conditions have become a cornerstone in the negotiations.
Probably, the next Brexit summit may be planned for November – this should be announced before the end of the next week.
The statistics published in the morning showed that the Unemployment Rate in the United Kingdom in July remained the same as before, at 4.0%. By the way, it wasn’t expected to change. The Average Earnings Index added 2.6% 3m/y, which is better than both previous and expected readings of 2.4% 3m/y. These readings are a positive signal and a good support for the Pound – they mean that employers are ready to compete for labor force. The Claimant Count Change expanded by 8.7K, which is worse than expected. It’s quite strange and unusual for August, because, as a rule, the tertiary industry requires a lot of seasonal employees in summer.
Orgin: RoboForex
