10.09.201910:23 Forex Analysis & Reviews: Focus – Brexit and the growing pound

'This week, the attention of traders and investors is focused on the two largest world currencies – the euro and the British pound. The problems associated with the UK's exit from the European Union keep the tone of the English currency. At the moment, the pound is in positive territory against the US dollar.

A week earlier, the rate of the British currency against the US dollar fell to a three-year low and then began to adjust against the backdrop of a weakening dollar. On Monday, September 9, the GBP/USD pair soared to one and a half month highs. The reason for this was the softening of the rhetoric of Boris Johnson, the British Prime Minister. He announced a possible deal with the euro bloc by October 18, 2019.

According to a survey conducted by Reuters, only 35% of respondents state the likelihood of a "tough" Brexit. The rest are counting on an orderly exit of the UK from the European Union. Some of the economists interviewed believe that Brexit will take place after October 31, while others are confident that the deadline for withdrawing from the EU will be delayed until January 2020.

Currently, the British pound is showing signs of strengthening. The currency of the Foggy Albion rose after British lawmakers ruled out the option of the country leaving the euro bloc without a deal. As a result, the UK will again have to ask for a reprieve from the European Union if an agreement is not signed by October 19, 2019. This issue is extremely painful for both sides.

The dynamics of the pound may change after the publication of data on the labor market in the UK. Many analysts believe that they will be weak. The British currency is currently trading in the range of 1.2339 – 1.2351. On Monday, the pound soared to the level of 1.2375 – 1.2380. Experts believe that the past week was marked by the pound, and the current one will continue this trend.