The Pound believed in Brexit. Overview for 29.09.2020

GBPUSD is reaching stability on Tuesday after rising the day before.

The British Pound significantly improved earlier this week amidst optimism relating to the Brexit deal. The current quote for the instrument is 1.2856.

There was information on the market yesterday that the United Kingdom achieved meaningful progress in talks with the European Union in their Brexit trade agreement and may conclude it this October. It would really be great and surely helped to avoid chaos when the current transition period was over. 

The final decision of the trade agreement between parties has to be concluded by the end of December. However, October was marked as a preliminary date from the very beginning because everybody understood there must be some cushion of time knowing how much the Brits like stalling for time in order to bargain for better conditions for themselves. 

This week, the parties will discuss aspects of fishing. 

Market players highly appreciated the information about talks and progress. It became really important after the media reported last week that Boris Johnson and his government were lobbying for a bill, which would allow the United Kingdom to unilaterally abandon the performance of some articles of the agreement in winter. The problem here is the Northern Ireland border and that’s much more complicated than the fishing industry. 

It would be great for the Pound if the talks were a bit faster: there are too many new cases of the coronavirus, that’s why the country’s government is considering a tougher stance on social restrictions in order to fight the second wave of the COVID-19 pandemic.