UK Prime Minister Rishi Sunak met at Windsor with European Commission President Ursula von der Leyen today to discuss Brexit. more precisely, to discuss the so-called Northern Ireland protocol. This is one of the final outstanding issues preventing the Brexit chapter from closing. Rishi Sunak is set to deliver a statement on discussions to the UK Chamber of Commons at 6:30 pm GMT. However, there is a lot of confusion around the outcome of talks.
Steve Baker, British Minister of State for Northern Ireland and a Brexit hardliner, asked by reporters as he left Downing Street 10 said that Prime Minister Sunak was at a cusp of securing a fantastic deal. Later, the media reported that Democratic Unionist Party (DUP) of Northern Ireland liked the deal and is ready to accept it soon. However, this optimism was put under question later on when DUP leader Donaldson told reporters that he is neither positive, nor negative on the outcome of talks and that his party will need to take time to analyze the proposal and how it answers DUP's concerns.
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Create account Try a demo Download mobile app Download mobile appHaving said that, there is a lot of uncertainty and the statement from Sunak at 6:30 pm GMT today may be simply an update rather than an announcement. Nevertheless, GBP has traded higher throughout the day and is the best performing G10 currency at press time. Taking a look at GBPUSD chart at D1 interval, we can see that the pair bounced off the support zone marked with 38.2% retracement of the downward move launched in mid-2021. However, it should be said that a bulk of this move was driven by USD weakening following disappointing durable orders data for January at 1:30 pm GMT.
Source: xStation5
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