GPB/USD May Jump on Hopes of Brexit Agreement

WikiFX News (17 Dec.) - Recent headlines stated that Britain and EU had made progress on key issues in trade talks. GBP/USD once gained 1% thanks to the positive dynamic, with further upsides to come in the immediate future.

Both sides now see a possible way forward on the level playing field and fisheries, key issues on which they were sharply divided.

Previously, the EU wanted to prevent British companies from gaining an unfair competitive advantage on its own market by imposing retaliatory tariffs, if Britain lowered current standards. At present, however, the bloc has recognized the need for an independent arbitration body.

Besides, fisheries has been among the biggest obstacles between Britain and France. In addition to compensation for French fishermen, Britain also promised the fish quotas to France and other nations in its waters.

The odds of Britain agreeing a trade deal with the EU before the end of the year have risen to 70%, betting markets showed on Wednesday. GBP/USD is hopeful to gain an additional 2%, with the target at 1.38.

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Chart: Trend of GBP/USD