Great Britain Pound Pauses Decline on Thursday

The Great Britain pound fell a bit on Wednesday, though paused its decline during Thursday’s early trading. The currency started a rally in October but has halted it in the middle of December and now is in a bearish mode.

The theme of the Brexit remains a hot topic for the United Kingdom. It is unclear whether Prime Minister Theresa May will be able to avoid the “hard” Brexit through negotiations with the European Union and what terms the EU will demand. Meanwhile, Scotland is talking about a referendum about independence, considering that the exit from the EU is unconstitutional after Scotland voted for remaining in the Union. Northern Ireland showed signs of discontent as well.

Meanwhile, the monetary policy outlook remains supportive for the sterling. Markets had priced in more accommodative policy earlier, but had to readjust themselves after the Bank of England changed its tone from dovish to neutral.

GBP/USD ticked down from 1.2365 to 1.2351 yesterday and traded at 1.2364 as of 00:53 GMT today. GBP/JPY was down from 145.67 to 145.18 on Wednesday before trading at about 145.30 during the Thursday’s trading session. GBP/CHF opened at 1.2717 and fell to 1.2680 yesterday and stayed close to that level today.

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