The Pound is skyrocketing. Overview for 25.01.2019

GBPUSD is going higher and higher as the Brexit is getting more and more support.

The British Pound continues rising against the USD on Friday. The current quote for the instrument is 1.3115, the highest this year. A couple of week ago, it seemed that there wouldn’t be any progress in the Brexit talks at all, but now it’s very different. Well, it looks like sometimes miracles do happen. 

During the World Economic Forum Annual Meeting in Davos, the Irish Taoiseach (the prime minister, chief executive and head of government) Leo Varadkar explained his stance on the Brexit. He believes that leaving the European Union according to the “tough” scenario without the trade agreement would be crucial for the United Kingdom and prevent the country from keeping its proper trade relations with a lot of countries both inside and outside Europe. In Varadkar’s opinion, the Brits would have a lot of problems with making any business deals. It’s not only about Germany, France, or other European countries, it may also be applied to Japan, or, for instance, South Korea. 

Northern Ireland’s stance on the Brexit said aloud is very important now, because the border issue between the United Kingdom and Northern Ireland remains one of the “hottest” in the Brexit talks. If Northern Ireland supports the current version of the Brexit agreement offered by Theresa May, the British Parliament will have more chances to approve it on January 29th. 

However, the key problem in this case is concerns of the British policymakers that the European Union may “fob off” its conditions relating to customs on the United Kingdom if the Brexit continues according to the “soft” scenario. This agreement offers to keep a transparent border between the Republic of Ireland and Northern Ireland and it does not sit well with a lot of EU policymakers.