The Pound is analyzing May’s speech. Overview for 22.01.2019

On Tuesday morning, GBPUSD is trading downwards; market players are analyzing the British Prime Minister’s speech and waiting for the numbers to be published in the afternoon. 

The British Pound is retreating against the USD on Tuesday morning. The current quote for the instrument is 1.2877.

The Brexit talks are once again looming large. Yesterday, the British Prime Minister Theresa May refused discussing the Brexit with her party. Instead of this, she is intending to build a constructive dialogue with the European Union about changes in the UK’s stance on the Northern Ireland issue. For the EU, May’s intentions are quite doubtful, as the European policymakers believe that the agreement made earlier was perfect for both parties. However, most members of the British Labor party do not agree to this.  

The problem is that May hasn’t been able to win the majority in the British Parliament to approve the Brexit agreement, which she had been working on for more than a year. The thing that the Labor party doesn’t like most of all is the custom union with the European Union. May understands perfectly that the EU is very unlikely to change it, that’s why she is looking for other options to distract attention from the key problem and “create an illusion” of compromise. 

January 29th, when the British Parliament is going to have another vote on the Brexit agreement, is just several days away. The agreement has to be modified prior to this date. The new vote is expected to be less problematic than the previous one. Still, the Pound is kept on its toes.