Brexit: preparations have started

Brexit: preparations have started

Setting the stage

Today, the UK parliament starts the debates over Boris Johnson’s Brexit plan. This process is planned to end by Thursday. As the Prime Minister has the Conservatives’ majority in the House of Commons, the legislation is expected to be passed smoothly. Hence, financial observers do not see here any source of trouble.

Tomorrow, Boris Johnson meets the European Commission president Ursula von der Leyen. That will be the starting point for the current stage of UK-EU divorce negotiations. Analysts fear that the rigid stance of the British PM on exiting the EU by the end of 2020 at all costs may cause the markets to tremble more than expected. As the no-deal Brexit risk stays above the markets as the sword of Damocles, the GBP is under constant pressure down. Consequently, GBP is foreseen to trade lower over the next months.

Short-term

On the H4, the EUR/GBP moved from 0.8450 in the first day of 2020 up to 0.8540 yesterday. Then it dropped to 0.8473, where it is now. Analysts predict that is a short-term drop, and a gradual strengthening of EUR is likely. The December high of 0.8580 serves as a secondary resistance and a checkpoint for the pair’s bullish intentions.

EURGBPH4.png

Long-term

Analysts foresee a strong possibility for the pair to rise up to 0.89 closer to the second part of the year. As impossible as it seems right now, the daily chart shows that this level was just left in October, so that is nothing extraordinary. The question is more “when” then “how”. However, the certainty of this trend should not be taken for granted. The coming months will give us clues on whether there will be a no-deal Brexit or the UK and EU will manage to meet the deadline in good terms.

EURGBPDaily.png

Similar

Will the CPI Crash the USD?
Will the CPI Crash the USD?

 The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!

Latest news

The Yen Sets New Lows
The Yen Sets New Lows

The Japanese yen fell to its lowest level against the US dollar in 33 years. Read the full report to learn the next target for USDJPY!

BlackRock CEO Supports The USD
BlackRock CEO Supports The USD

BlackRock CEO forecasts the Fed may have to raise rates further. The US dollar index (DXY) gains 130 points today. Read the full report to get more fresh news and technical analysis!

Deposit with your local payment systems

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

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

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!

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