Sterling jumps on Brexit trade deal hopes

The Brexit situation has improved significantly in recent hours. The negotiations were extended and European Union’s chief Brexit negotiator, Michel Barnier and von der Leyen, the head of the European Commission, speaks well about the current negotiations (though with a certain dose of caution). However, there are no specific comments from the UK, although British media complained that trade agreements have been reached with nearly 60 countries in the last 2 years, which is equivalent to nearly £ 200bn. However, it is worth remembering that in the case of the EU the situation is not so simple. In this case, the EU countries are Great Britain's largest trading partner. In the previous year, the UK exported £ 294bn worth of products and services and imported £ 374bn. Moreover, the European Union itself does not necessarily want to maintain exactly the same trade relations as before. Where does this come from? Keeping the conditions unchanged would give the green light to Eurosceptics from other countries. Therefore, it cannot be expected that concessions will be made only on the European side.

Meanwhile, the GBPUSD pair is trading above the 1.3400 level and above the 78.6 retracement of the last correction. The pair is still trading in an important supply zone, the upper limit of which is marked by the 2-year highs. Source: xStation5

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