So what about the “imperfect” Brexit deal? The agency is bullish on the pound, or will challenge 1.37
Although the UK reached a Brexit deal with the European Union last week, on December 27, market analyst Joe Meyers (Joe Mayes) said the five issues in the Brexit deal remained unresolved and disputes over fishing rights and other aspects could erupt again.
But some staunch Brexit MPs have hinted they will approve the deal, and the agency is looking at more pounds. Foreign exchange analyst James Skinner (James Skinner) predicted that if the exchange rate could exceed $1.36, it could rise to $1.37 by the end of the year. Bank of Western Pacific is more optimistic that it will rise to $1.37~$1.40.
On December 24, the European Commission announced that after many rounds of intense negotiations, the European Union and the United Kingdom finally reached an agreement on a series of cooperative relations, including trade, to clear the way for Britain to end the “Brexit” transition by 2020.
After news of a trade deal broke, the pound brushed its latest week-high 1.3619 in London, narrowing its gains to 1.3492, down more than 110 points from a day earlier, but then rebounded to 1.3560. After entering December 25, the pound remained volatile, trading near 1.3565.
Since Britain announced its departure from the European Union, negotiations between Britain and the European Union on a Brexit trade agreement have attracted much attention. And the establishment of this historic Brexit trade agreement also means that more than four years of Brexit drama, the real end.
The agreement contains new rules on how the UK and the EU will live, work and trade together. The full document is expected to reach 2000 pages and has not yet been released. However, according to the information currently published, the agreement will cover different areas such as energy, fisheries, aviation and civil nuclear cooperation.
Experts believe that the agreement can be seen from the British and European concessions, and such tariff agreements are rare, showing that both sides are actively avoiding Brexit without agreement. At the same time, considering the 2020 epidemic and other issues, the two sides also hope to achieve a relatively stable overall environment in the present environment.
At a press conference in brussels, european commission president von der ryan admitted that he felt “relieved” and that “the end is another beginning” and that britain’s official “Brexit” would open a new page for the EU. Next, the trade agreement must be approved by the European Parliament and the British Parliament, respectively.
Although Britain and the European Union reached a Brexit deal, market analyst Joe Meyers wrote on December 27 warning that the main problems of the deal were either unresolved or at risk of another outbreak. Although imperfect, the Brexit deal is likely to pass, and the agency predicts the pound will challenge 1.37.
The pound continued to rise after entering a new week, well supported above 1.35. GBP/USD 1.3570/72 at 15:11, Beijing time December 28.