GBP price, UK inflation data, news and analysis from Brexit:
- UK inflation numbers rose in October and that could help the recent uptrend in GBP / USD continue.
- Talks between the EU and the UK over their trade relations after the end of the Brexit implementation period on December 31 could reportedly lead to an agreement early next week, and that helps the GBP too.
- However, if there is no sign of progress, the sterling is likely to give up some of its recent gains.
GBP / USD trend is rising and holding
The recent uptrend in GBP / USD could extend further after it was revealed that UK inflation rose to 0.7% in October, above both the previous 0.5% and the 0.6% that the were forecast by the economists surveyed by the news agencies.
Source: DailyFX (you can click for a larger picture)
The numbers are another positive factor for GBP / USD, which is expected to hit 1.33 shortly. However, the couple’s fortunes will remain tied to the EU-UK negotiations over their relationship when the current Brexit implementation period falls on Jan. December ends.
GBP / USD Price Chart, 30 Minute Timeframe (Nov 13-18, 2020)
Chart from IG (you can click on it for a larger picture)
of IG customers long.
of IG customers short.
Recent reports suggest that a deal between the EU and the UK is possible early next week, and any deal would also bolster sterling’s recent strength. It should be noted, however, that if such an agreement does not materialize, there will be very little time left for the ratification process required to implement an agreement – a potentially negative effect for the pound but a positive effect for the FTSE 100 index of the major London listed stocks that tend to benefit from GBP weakness.
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