GBP price, Brexit news and analysis:
- The latest round of talks between the UK and the EU on their post-Brexit relationship begins next week; expected to be the final set of negotiations before a summit next month to evaluate progress.
- So far, an agreement has been elusive, with the two sides still far apart, but any hint of a breakthrough could boost GBP.
- In the meantime, a speech this session by UK monetary policymaker Michael Saunders has the potential to weaken GBP/USD.
GBP/USD traders turn attention to post-Brexit talks
The UK and the EU are to begin a new round of talks on their post-Brexit relationship next week; potentially the last before a planned EU summit on June 19. So far, there have been few signs of progress, with the two sides still far apart. However, that means any hint the two sides are making headway could give GBP/USD and the GBP crosses a lift.
So far, the UK has insisted that the current transition period will not be extended beyond December 31 and is prepared to go it alone from then with or without a deal.
UK monetary policy update
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In the meantime, GBP/USD traders need to watch out for a speech at 1000 GMT this session by Michael Saunders, an external member of the Bank of England’s monetary policy committee and a noted dove.
In his speech, Saunders will focus on the impact the Covid-19 pandemic has had on the UK economy, highlight some risks he sees to the outlook, and discuss implications for monetary policy.
Of particular interest will be any comments he makes about the possibility of negative interest rates (NIRP) in the UK to boost economic activity.
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— Written by Martin Essex, Analyst and Editor
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