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Extension Uncertainty Weighs on Pound

By Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.

Pound, brexitThe Pound slipped against the greenback in London trade while FX traders await the EU's decision regarding a possible Brexit extension. Uncertainty, especially given the Prime Minister's assertions that he wants the leaving to occur on October 31st even without an agreement, are also still weighing on the Pound. Boris Johnson has said that if a postponement is agreed to which would extend the departure date through to the new year, he will call for a general election. Analysts are not sure that he is enough support, however.

The GBP/USD pair was trading down, falling to $1.2886, a loss of 0.1983% but moving off the session trough of $1.28748. The EUR/GBP is higher at 0.8636 Pence, up 0.1903%; the pair's trading range for the day is 0.85989 Pence at the low end to 0.86480 Pence at the high end.

January 31 Likely New Leave Date

Strategists say that the greater likelihood is for a postponement through to January 31st 2020, though France is pushing for a shorter period. All EU member nations must vote on the time frame. Analysts generally agree that what is at least clear is that a hard Brexit is no longer a consideration, nor is Britain going to remain in the trading bloc. Ultimately, Britain will leave but when is still the uncertainty.

Barbara Zigah
About Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.

 

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