GBPUSD retreated to its weekly lows on Tuesday.
The British Pound significantly weakened against the USD yesterday. The current quote for the instrument is 1.3081.
The British Parliament, which voted on the Brexit agreement yesterday, made the deal with the European Union impossible without additional discussions. Apart from this, the British policymakers were against shifting the Brexit date, so it remained March 29th.
What does it mean? The British policymakers are intending to force the European Union to revise several aspects of the Brexit agreement, including the Irish border. The EU representatives, it their turn, on several occasions told the media that they were not going to get back to the agreement that had been signed earlier. Moreover, Brussels believes that the UK has to ensure the European Union that it wouldn’t insist on hard national boundary between Ireland and Northern Ireland, which belongs to the United Kingdom.
All of this is quite complicated and not transparent. Right now, it’s pretty clear that the British Prime Minister Theresa May will have to resume talks with the European Union. The Brexit date is less than two months away and the key documents for it aren’t ready yet.
However, looking at the Pound behavior one may assume that market players are still hoping for a positive outcome.
Orgin: RoboForex
