Since the elections in the UK will take place literally within a few weeks, the two main parties are fighting for dominance, as they hope to take the lead in the elections and guide the countries to the future. In its present form, Article 50, the formal initiation of Brexit negotiations took place, and the two sides split in how to conduct the business. The current Prime Minister, May, took a strict approach to the negotiations, hoping to play ball. She stated that she would get the best possible deal for the UK or not at all, all by marginalizing Wales and Ireland, without considering their views on how Braxit should be handled.
On the other hand, the Labor Party adopted a more general position, implying that they see the role of positive relations between the EU and the United States in promoting the best solution that is acceptable to both sides and does not take an aggressive all or nothing position.
To date, the pound has fallen more than 20% since Brexit’s vote last year, but GBP has managed to rebound from its lows, as clarity enters the markets regarding Brexit’s influence, showing that the UK is more resilient than investors who initially believed At the same time, the Bank of England intends to retreat from its positions after Brexit’s rate cut, given the steady growth and inflationary pressures.
Looking ahead, the British pound will remain sensitive to news regarding the forthcoming elections and all the economic releases of the country. Today’s speech of Prime Minister Mai will be analyzed by traders, as they are looking for further clues about her Brexit position, if she hits in a positive tone, which markets interpret as good for the UK, we will see a strengthening of the GBP and vice versa if she hits a more negative tone. As for the economic data, if the data show that the country will be pumped up with economic growth on the horizon, traders will quickly press GBP in anticipation of improved conditions, but worse than the expected economic releases that show that the country will be cooling down, That the pound sterling will go down, as the bears will pass the currency lower.