GBPUSD keeps on trying to rise but the external background is not in favor of it.
The British Pound is retreating a bit against the USD on Tuesday afternoon but may yet recover. The current quote for the instrument is 1.3050.
This week’s highlight is another round of the Brexit trade talks between the United Kingdom and the European Union. Earlier, London unilaterally imposed itself on a deadline on October 15th, 2020, by which the parties should arrive at a consensus on the trade agreement after the transition period is over. Well, the clock is ticking but no results have been shown up. Even if one assumes that policymakers can smooth out all tensions right now and start working on approving the agreement, it would take five weeks to sweat the details.
It’s very important for the Pound right now that the talks are not ruined – it might be more serious stress even if compared to a long drought with zero results. If the talks continue, GBPUSD might be able to stay above 1.30. Otherwise, the pair may plummet to 1.25.
The statistics published by the United Kingdom in the morning were quite good. The BRC Retail Sales Monitor report showed +6.1% y/y in September after being +4.7% y/y in August.
There will be more numbers from the UK today as the country is scheduled to report on the Unemployment Rate, the Average Earnings Index, and the Claimant Count Change.
Orgin: RoboForex
