Pound Slightly Losses Footing in Early Monday Sessions
The British pound starts the weak wobbling against the euro, the US dollar, and other forex currencies. But bulls held tight and the sterling eventually picked up momentum.
Investors are praying for good news from the Brexit negotiations that continue to shake the sterling’s strength.
Just recently, it was reported that the British government launched a multimillion sterling communications campaign. The authorities plan to reach British citizens living in various EU countries and inform them about the situation.
The communications campaign was set up to ensure Britons about the steps to take if they wish to remain in the EU countries.
The euro to pound pair initially rallied in the first half of this Monday’s forex trading sessions. But, as of press time, the EUR/GBP is seen slipping by 0.12% or 0.0010 points.
The EUR/GBP now trades at about 0.907.
Meanwhile, the sterling to greenback pair continues to see green territories as bears fail to defend themselves. Looking at it, the GBP isn’t technically strong, so this means that the US dollar is considerably weaker.
As of writing, the trading pair has advanced by about 0.51% or 0.0064 points in the sessions. Prices have fluctuated between 1.2518 and 1.2630 this Monday.
And as for the pound’s match up against the Aussie, the pair had gained by 0.36% or 0.0064 points in the sessions. Prices have reached ranges of about 1.7928 to 1.8040.
Brink of Collapsing
The divorce talks have reached a point where leaders could reach a no-deal scenario. Negotiators from the United Kingdom and the European Union are set to resume their talks later today.
Investors are hoping nothing but the best because, otherwise, it would shake the direction of the pound. The results would shake the fx market and ultimately hurt not just the sterling, but also the euro.
The two sides are desperately trying to reach an agreement and overcome their huge differences.
Just recently, British Prime Minister Boris Johnson’s allies said the BPM believes that negotiations could collapse. This is because members of the bloc have become increasingly tough to negotiate with.
There are sources saying that the BPM has already warned British leaders about the possibility of the EU27 pulling out. This comes as some unnamed sources say that there are “chasms” between the two sides.
The disagreements from both sides are mainly concerned with fishing and LFP rules. The EU has said that it only wants to prevent unfair competition.
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