Forex News Archive

The British pound is gaining momentum against major currencies, with GBP/USD up 0.6% to 1.2480, as markets anticipate a significant Brexit "reset" announcement from UK Prime Minister Starmer on Monday. The deal is expected to bring Britain into the closest alignment with the EU since Brexit, covering trade, agriculture, security, and defense. It will also include a youth mobility agreement, fostering closer ties between the UK and EU. The positive developments have boosted market sentiment towards the pound, with investors now pricing in a more stable and predictable UK-EU relationship. However, the reaction may be tempered by concerns over the long-term impact on UK sovereignty and regulatory autonomy. Traders will closely monitor the details of the agreement and any potential opposition from hardline Brexiteers. GBP/USD faces immediate resistance at 1.2520, with a break above opening the door for a test of the 1.2600 handle.