GBP/USD Value Relies Heavily Upon the Invoking Of Article 30
By Daisy Joseph
The value of Sterling pound faced a major decline, since the Brexit vote. Even though the pound trades slightly better now, the threat of invoking Article 50 has been looming over its head. Amidst political difficulties, Theresa May has assured that she will invoke Article 50 on March 29th. The PM of the UK has indicated that Britain will move towards Hard Brexit, even if it means, it won’t remain in the single market. The negotiations between EU and UK will drag on for another 2 years, before the Brexit deal is finalized.
Experts predict that the pound will remain flat, rise or fall depending on the conditions surrounding the Brexit deal. The market is already aware that Britain will lose its access to the single market, by quitting EU. So, many economists predict that there won’t be a huge change in the value of the pound, as of now. It may gain up to 1.2630 or go down till 1.2540.
When Theresa May includes a conciliatory message or EU officials respond quickly, the pound may increase to up to 1.2790, as a result of a short squeeze. Both sides showing signs of peacemaking, will help the Pound.
Brexit is still bad for the UK economy, which is heavily reliant on the trade deals with the EU. The EU officials are more likely to push other countries to align their economy with EU and this could mean that the pound will suffer more in the forex market. The initial support may be available at around 1.2415.
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