The Great Britain pound ended the past trading week as the strongest currency on the Forex market thanks to the Brexit developments. But with no trade deal in sight and uncertainty surrounding the outcome of the talks between the United Kingdom and the European Union, analysts are skeptical that the sterling will be able to keep the upside momentum for long.
The UK Parliament yet again rejected the Brexit plans of Prime Minister Theresa May even after the EU made a concession, allowing Britain to exit the Irish backstop under specific circumstances. But optimism returned to market participants after the Parliament voted to rule out a no-deal Brexit and to push back the Brexit deadline beyond March 29. The Parliament vote for the Brexit deal on March 20, and if it is approved, the extension will be till June 30.
Next week, traders will watch macroeconomic data, including inflation and retail sales reports, as well as the monetary policy meeting of the Bank of England, which should have a big impact on the sterling. Several other central banks will hold their meetings too, including the US Federal Reserve. The Fed statement will likely affect the whole Forex market.
GBP/USD jumped from 1.2983 to 1.3290. EUR/GBP slumped from 0.8650 to 0.8516. GBP/CHF rallied from 1.3080 to 1.3314.
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