GBP/USD Price, Chart and Analysis:
- Sterling little changed despite trade negotiation warning.
- GBP/USD supported in a holiday-thinned market.
Post-Brexit Trade Negotiations May Get Ugly, Early.
A senior EU official, speaking at a conference in Germany, warned that the EU and UK may ’rip each other apart’ when trade negotiations begin, as both sides look to take the upper hand. French Foreign Minister Jean-Yves Le Drian said that the EU will be a tough negotiator when talks begin in March and that a trade deal between the two sides this year is unlikely. With both the EU and the UK adopting tough negotiating positions, there is a worry that trade talks may stall soon after the start. UK PM Boris Johnson has repeatedly said that the UK will leave the EU, with or without a trade deal at the end of December this year.
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Sterling opens the week marginally lower across arrange of currencies but moves today are expected to be limited with the most US financial markets closed for President’s Day. GBP/USD trades around 1.3040 with 1.3070 the near-term upside target before 1.3177 comes back into play. Support levels at 1.3000 and 1.2954, with the latter expected to hold in current market conditions.
GBP/USD traders should be aware that there is a raft of UK economic data out on Tuesday and Wednesday this week, while the latest FOMC minutes will be released at 19:00 GMT on Wednesday. For all market moving data and events, see the DailyFX Calendar.
GBP/USD Daily Price Chart (August 2019 – February 17, 2020)
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