Traders dump GBP on Boris's Brexit threat
UK Prime Minister Boris Johnson shocked many economists and analysts by expressing the need for an agreement with the European Union regarding a trade deal to be completed by the time of the European Council on 15 October. He also expressed his willingness to walk away without a deal at the end of the year.
Traders subsequently dumped the British pound on the news. Did you know that you can speculate on the price of GBPUSD using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!
Over the past few months, UK and EU negotiators have made very little progress in talks. The main issues include:
- State aid
- Fishing rules
- What has worried some in the EU, which is the fact the UK government is reportedly looking into new laws that will change previous agreements made with the EU
The Financial Times reported that the government is to publish a bill on Wednesday that will override the previous deal struck to prevent a hard border between Northern Ireland and the Republic of Ireland. This deal was deemed to be crucial for the EU to ensure a trade deal between both countries.
While there are only two rounds of talks left before the 15 October, some economists still believe a deal will by the end of December. One reason is the fact the UK is struggling with the deepest recession of any major economy and a no-deal could be the tipping point for a country still reeling from the coronavirus.
How to trade GBPUSD with Admiral Markets UK Ltd
If you are feeling bullish or bearish on the price of GBPUSD you can speculate on its price direction using CFDs. To get started, follow these five simple steps:
- Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in GBPUSD at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, GBPUSD, Weekly - Data range: March 30, 2014, to September 8, 2020, performed on September 8, 2020, at 7:16 am BST. Please note: Past performance is not a reliable indicator of future results.
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