The British pound has been a trader’s heaven over the last year as the uncertainty of Brexit negotiations has seen the currency swing widely in one direction then the other but some predict the volatility this year will be a lot less and significant swings in the pound won’t be seen until the end of the year.
Now that the first round of Brexit talks between the EU and the UK are out of the way, the second stage which is trade negotiations has begun with the main topic being will Britain remain in the single market or choose hard Brexit and leave the block without a deal.
Negotiations are likely to continue until October until a final decision has been made and in the meantime, the predictions are the pound will remain relatively stable until the deadline approaches.
“Brexit is likely to increasingly become an issue again over the coming days. But in the end the scramble about the start of the second phase of the Brexit negotiations confirmed that the talks will only see a breakthrough when a deadline is approaching and ultimatums are presented,” says Esther Reichelt, an analyst from Commerzbank.
The British pound jumped 10 percent against the US dollar in 2017 but most predict the currency will finish close to current levels against its US counterpart at the end of the year.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|