12th September 2018 - GBP is waiting for the MPC

Walid Salah Eldin

Master Trader
Feb 15, 2016
The British pound is still having footing above 1.30 psychological level, after Chief EU Negotiator Michel Barnier said that a Brexit deal could be reached within the next 8 weeks following news about easier stance from the Germane side to pass a Brexit deal can cap financing turbulence and erode the business confidence.

His comments removed most of the pressure he placed on GBP last week by saying that he strongly opposes Britain's Brexit plan!

By God's will, The market will be waiting tomorrow for The MPC meeting outcome, after the committee raised the interest rate 0.25% last Aug. 2.

This meeting comes, after BOE's chief Mark Carney has already warned last week about reaching no Brexit deal can dampen the economic activity in UK.

Mark Carney said that The MPC doesn't have a forecast for no deal Brexit and he can't make a long term forecast on the potential impact of a no deal Brexit on the economy.

Carney said that the markets see another sterling drop, if there is no Brexit deal.

He said also that the real income squeeze would return for UK households for a few years if no Brexit deal and that could lead to a material rise in prices in the shops due to weaker pound and potential tariffs and then the policy would be tighter instead of looser in that case.

Kind Regards

Global Market Strategist of FX-Recommends

Walid Salah El Din