GBP collapses on Brexit talks. What’s next?
In the midst of the US presidential election, and while investors wait on the confirmation of the next President of the United States, the British pound has been quietly collapsing. The currency moved sharply lower against commodity currencies (AUD, CAD, NZD) as the UK and European Union's Brexit negotiators warned of major disagreements after 14 days of intensive talks.
The self-imposed deadline to reach a deal is now only a few weeks away with the last round of negotiations due to take place next week in London. There are still big divergences between the three issues that dogged negotiations - a level playing field for businesses, access to British fishing waters and how a deal can be enforced.
According to sources familiar with the discussions, the most difficult issue is the level playing field. This is designed to make sure UK companies do not unfairly undercut European competitors. The UK is refusing to commit to clauses that would dilute its existing competition rules. A deal on fisheries is said to be on the table.
Did you know that you can speculate on the direction of the British pound against a variety of other currencies 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!
How to trade the British pound with Admiral Markets UK Ltd
If you are feeling bullish or bearish on the price of the British pound against another currency 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 GBP and choose your currency pair 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, #GBPAUD, Weekly - Data range: May 25, 2014, to Nov 5, 2020, performed on Nov 5, 2020, at 6:53 am BST. Please note: Past performance is not a reliable indicator of future results.
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