Negotiations on Brexit provide support to the pound

After the data that the UK and the EU agreed on the payoffs, not a week has passed, and information on the agreement on the Irish borders already appears. This provided support to the British pound. Omitting expectations on trade relations between the EU and Britain, the “Irish issue” could be one of the most acute in the history.

But, according to the Irish Foreign Minister, the Irish borders will remain unchanged, as they looked before Brexit. At the same time, the significant tightening of the border regime is also not expected. As a result of a relatively quick solution to the “Irish issue”, the market is following the Brexit negotiations and expects data on trade relations between the EU and the UK.

As a result, the British pound is strengthening across the entire spectrum of the market, updating the highs. Thus, the EUR/GBP pair weakened noticeably, thereby breaking the lower boundary of the global rising channel, which was traced from November 2015. At the moment, the cross-rate EUR/GBP is limited to the low of the beginning of November at the level of 0.8730.

The EUR/GBP graph H4. The current price is 0.8760.

Hanzenko Anton