Sterling Holds It’s Position Steady Awaiting Brexit Talks
By Anatol Thomas
The British Pound Sterling is directly influenced by the focus of the Brexit talks. The currency took a beating when Brexit was finalized last year. Prime Minister Theresa May was earlier clear that the UK is only hoping for a hard Brexit. The recent election in Britain has also resulted in a major blow to the currency value in the forex market.
The entire month has been bad for the Sterling, as it reached a two-month low value of $1.2636 due to the shock of the election results. However, in the last week, the currency was supported when Bank of England was eager to increase the interest rates. The vote split in the monetary policy committee offered some support for Sterling in the forex market.
On Monday trading, Sterling was holding its relatively steady position in the forex market as the Brexit negotiations are about to begin. The investors are also hoping to find information about the opinion of the Federal Reserve to confirm whether the increase in the US dollar rate will continue in the future.
Pound was trading at $1.2777 and the currency is expected to be vulnerable. The negotiations on removing the UK from the European Union are expected to affect the currency in the worst possible way in the upcoming months. The UK elections have shown that the future of Prime Minister Theresa May and her Brexit plans are not optimistic. Many trading experts, the current political conditions may persuade Theresa May to choose a soft Brexit.
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