GBPUSD rose on expectation of Brexit agreement by end of 2020

Mohammed Abdelkhalik
November 18, 2020

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GBP/USD Weekly Outlook: 18th November 2020

GBPUSD continued to achieve its gains recording its fourth consecutive daily rise and its highest level in a week. These successive gains come in light of the continued decline of the US dollar. In addition to the increasing hopes for reaching a final trade agreement between the United Kingdom and the European Union soon. Before the scheduled Brexit. Next December 31.

During today’s trading, GBPUSD rose by 0.4% to trade at $ 1.3291, the highest in nearly a week, from today’s session opening level at $ 1.3242.

At the close of trading yesterday, GBPUSD recorded gains of about 0.3% for the third consecutive day. In light of the US dollar’s ​​continued to decline against most major and minor currencies.

Daily chart of GBPUSD - 18th November 2020

The British newspaper “The Sun” reported that Britain’s chief negotiator, David Frost, had informed Prime Minister Boris Johnson that negotiations were going well and that they were close to reaching a final trade agreement at the beginning of next week. Which would spare Britain a chaotic exit from the European Union.

Expectations indicate that the British pound will rise to $ 1.35 by mid-2021 in the event that the two parties reach a trade agreement that avoids Britain’s chaotic exit at the end of this year.

Later in the day, the British economy is expected to release important data on inflation rates last October.

GBPUSD rose on the US dollar decline

The US dollar continues to decline against most of the global currencies. Registering its fifth daily loss in a row and its lowest level in a week. These successive losses come in light of weak demand to buy the US currency as a safe haven and the increasing demand for high-risk currencies. With the improved market sentiment on the back of effective The recently announced proposed vaccines for the Coronavirus.

The dollar index, lost about 0.25% to trade at 92.21 points, the lowest in a week.

Later in the day, the US economy will announce important data related to the housing sector. Including the housing starts index and building permits last October.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.