Brexit: on the Queen's table

Brexit: on the Queen's table

What happened

The legislation for Brexit, as previously approved by the House of Commons, is now confirmed by the House of Lords. On Wednesday, the upper chamber of the British Parliament granted its approval for the document, passing it to the very final stage. Now, the paper only needs the signature of Queen Elizabeth II to be formally considered as official law.

What next

January 29 will be when the European Parliament will need to ratify the Brexit document. Once it is done, January 31 will be the date when the UK will be formally no longer a part of the EU. After that day, a transition period will start. It will last until the end of 2020. During this period, the UK, still following the EU laws, will be negotiating the terms of its economic cooperation with the members of the European Union.

What does it mean

Brexit is finally done. Done and done. That should be a bit reassuring for the UK economy, the GBP and the British society in general, whatever difficulties come next. The very fact that the years of uncertainty in this particular sphere of life for Great Britain, and the EU, come to an end, is a supporting factor. For the British pound, that should bring a fortifying effect, or at least give it some rest before it goes into another period of turbulence as the hard part of Brexit negotiations takes off.

Where do I see it

Against the Euro, the pound gained strength to the level where it was in the first part of December. It is possible that EUR/GBP goes below the support of 0.8430 to touch the December resistance level of 0.8400. But any further decline of the price in favor of the British pound will need strong input of the fundamentals from the Brexit-EU negotiations.

EURGBPH4.png

In the meantime, of course, the European economic factors do bring their part of the effect on the currency pair as well, so we have to take them into account. Particularly, we need to watch the monetary policy statement and press conference by the ECB today and see what Christine Lagarde has to say, specifically about the quantitative easing measures by the bank.

In other words, let’s wait for January 31 to let the UK break free from the formal bonds with the EU, and see how the negotiations start. Stay updated and watch EUR/GBP!

                                                                                        LOG IN

 

Similar

USD starts the week with gains
USD starts the week with gains

Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.

ECB report is in focus
ECB report is in focus

The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time. 

Latest news

How to trade ahead and after BOC report?
How to trade ahead and after BOC report?

The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

Manager will call your number

Correct number

Your request is accepted

Manager will call your number

Next callback request for this phone number
will be available in {time}

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera