empty
 
 
06.11.2018 03:00 AM
Some analysts believe that the pound could reach $1.35

This image is no longer relevant

The pound made a profit, even when the underlying economic data was weaker than expected, as the market preferred to focus instead on signs of progress at the Brexit talks.

The currency strengthened on Monday after the Sunday Times reported that Prime Minister Theresa May had made concessions from Brussels to allow her to keep the whole of Britain in a customs union with the European Union. The currency remained higher even after a report showed that the services sector slowed in October. The sterling can "break through" $1.35 within two days if a divorce is agreed between the UK and the bloc.

According to a British survey by Bloomberg last month, the British currency could recoup about half of its decline by more than 10 percent from Brexit's level if there is a divorce agreement. The positioning of the trader in the currency has sharply decreased, since the missed deadlines for negotiations over the past months have raised heightened concern about the lack of a deal.

However, the road to any deal is likely to be bumpy. Over the next few weeks, the sterling will continue to depend on the headline, and recent fluctuations mean "instability, which is possible with constant political uncertainty.

Fedor Pavlov,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback