Earlier, the Pound Sterling had been relatively steady versus the US Dollar but is now currently under some pressure. The GBP/USD had managed to extend gains made on Monday as optimism grows that the Brexit negotiations could result in a “soft Brexit.” The next phase of negotiations is about to begin, and investors and businesses are waiting for the outcome with trade negotiations with the bloc. Earlier today, Theresa May, Britain’s Prime Minister, said that the Parliament was about receive a bill proposing the legislation needed to allow Britain to pursue an independent policy to trade upon departure from the European Union. If enacted, the bill would convert existing free-trade agreements (with the EU) into British free-trade agreements.
As reported at 11:06 am (GMT) in London, the GBP/USD was trading at $1.3148 down 0.18%; the pair earlier hit a peak of $1.3178 while the low is at $1.3135. The EUR/GBP is trading at 0.87980 Pence, down 0.23147%; the pair has ranged from a session trough of 0.87900 Pence to a peak of 0.88217 Pence.
Concerns Still Weigh on GBP
Analysts say that the market is already pricing in the likelihood of a transitional trade deal. However, if sentiment sours and the Brexit talks devolve, the market will likely shift sentiment which would likely weigh on the Pound Sterling. Market players are still quite concerned about the Conservative government’s ability to eke out a trade deal that was favorable to British businesses and industry.