​GBP/USD Gains on Brexit Deal

WikiFX News (28 Dec.) - Lately, the European Commission announced that the UK and Europe have formally reached a Brexit withdrawal agreement. A no-deal Brexit is avoided, propelling GBP/USD to a new weekly high of 1.3619, up by 0.9%.

British Prime Minister Boris Johnson said they have got Brexit done and they will have full political and economic independence on January 1, 2021. The agreement ensures that most goods traded between the EU and UK wont face new tariffs or quotas, noted Johnson. Besides, the share of fish in British waters that the UK can catch will rise over the next five years.

The Brexit agreement, which will lower uncertainties, has not yet had the full document released. David Sassoli, President of the European Parliament, said “the European Parliament will analyze the post-Brexit trade deal clinched by the EU and Britain in detail before deciding whether to approve the agreement in the new year.”

Whats more, the issue of Scottish independence will be discussed a lot in the coming months. The pound will be struggling for direction before seeing progress on the issue and learning more details about the Agreement.

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Chart: Trend of GBP/USD