![]() ![]() ![]() The success of the sterling brought the euro back to life. Simply put, the positive data is priced in the pound quotes. You want to please people, but they are already happy. But let's not forget that optimism is only a lack of information. The optimism associated with the BoE's policy and rhetoric has inflated the GBP/USD quotes at the fastest pace since April 2017. No deal, on the contrary, will force the central bank to throw all its forces on saving the drowning economy. Mark Carney threw some wood into the fire of sterling purchases by stating the need for a more rapid normalization of monetary policy than the market currently expects in case of a deal between London and Brussels. However, when there is no choice, the process goes much faster: Someone in the Conservative Party would like closer cooperation someone, on the contrary, thought that without equivalence, London would have been able to get the status of the financial capital of the world much faster. This means that the British will be granted the same rights as the Americans and the Japanese. The pound managed to escape from the area of 2.5-month lows against the US dollar due to rumors about the Teresa May signing an agreement on the access of British companies to the EU financial market based on equivalence principles. ![]() Really, one shouldn't jump the gun when, depending on the outcome of the negotiations between London and Brussels, the GBP/USD pair can soar to 1.35 or, collapse to 1.2? Wouldn't it be better to wait for the results of these negotiations? Well, a girl once waited for a prince. A more violent reaction of the pound to rumors and gossip of a political nature than to macroeconomic statistics has already ceased to cause a smile, and investors treat the sterling wandering from corner to corner with understanding. With each passing month, the British traveling circus is more traveling and less - a circus. Pound is saving the euro The BoE's optimism has allowed the GBP/USD to soar above the psychological level of 1.3 ![]()
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