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GBP: Brexit Round 3 Showdown Weighing On GBP; What’s

The pound is under pressure, unable to gain ground against the dollar when the greenback is falling. EUR/GBP is getting closer to parity. What’s next?

Here is their view, courtesy of eFXnews:

BTMU FX Strategy Research  sees  some similarities between  GBP and USD  currently with both currencies languishing to a degree on political uncertainties that are outweighing positive signs in terms of the outlook for economic growth.

“Round 3 of Brexit negotiations will commence next week and there is increasing signs of a potential clash with the UK showing signs of discomfort over the oft-articulated EU insistence of a strict sequencing of negotiations with ‘divorce’ issues being dealt with prior to moving onto a transition deal and the new UK-EU trading relationship.

In that regard,  BTMU remains not convinced that GBP   will remain under downward pressure due to political uncertainties ahead of a fresh round of Brexit negotiations  and the return of parliament after the summer recess.

“The pound is down 3% so far in August, the second worst performing G10 currency (only NZD worse) and  we would not be surprised to see that performance turn around given the continued favourable flow of economic data,” BTMU argues.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.