Trend of Sterling During the Key Period of UK-EU Negotiations| Influencer Forex Analysis•Jasper Lo

After the EU‘s chief negotiator Michel Barnier had a 12-hour tunnel talk with the UK last Friday, British Prime Minister Boris Johnson’s official spokesman stated that although some progresses had been made, it is a pity that both sides did not reach an agreement due to some divergences. The EU hoped that the UK can make more concessions to reach the trade agreement that has been discussed for a long time.

The financial market seems to believe that both sides will reach an agreement, which brought a continuous rebound sterling. Hence, GBP/USD rallied to 1.3049 from 1.2675 recorded on September 23th, showing no worry about the UKs hard brexit in the financial market. Johnson said last week that according to an ultimatum, if the agreements are not likely to be reached before October 15th, the UK will terminate the negotiation completely and plan to brexit without trade agreements.

It is believed that the EU will file a suit against the UK on its internal market bill, so more attention should be paid in the next few days. And sterling is supported by the easing atmosphere in the negotiation. If sterling keeps rebounding, there would be a dramatic turning point that the final trading agreement is signed between the UK and EU. However, be careful that the good news may bring more attention in addition to some risks. The latest economic data released by the UK seems very bad, and its future data is expected to be worse due to the second round of COVID-19 outbreak.

Therefore, the Bank of England is more likely to impose negative interest rates or strong quantitative easing. It is estimated that some senior traders will seize the chance to sell in the market, and sterling may drop from a high level under the pressure. If the good news comes, sterling may challenge the upward resistance level of 1.3186-1.3267. So investors should be careful about buying at the level area. Meanwhile, sterling is set to fall to the level of 1.28 due to the possible hype based on the negative news in the market.

[About The Author]

Since 1987, Jasper Lo has been engaged in the financial industry

(forex, futures and gold) for more than 32 years and holds forex R.O.,

securities and futures broker licenses. Mr Lo is an expert in trading

forex, precious metals and commodity futures and an basic and technical

analyst.

Over the years, Mr Lo won many individual and team sales champion

awards, as well as outstanding employee awards. He was invited, as a

guest mentor, to the University of Hong Kong, Guangdong Ocean University

and Guangzhou Jinan University. And he was also appointed as the chief

training consultant by Hantang Securities and Dongguan Securities in

China.

Mr Los experience as guest of honor invited by media including Chinese and English newspapers and columnist:

-Guest of honor invited by TVB New Channels such as Finance Channel, Forex Focus, Global Watch

-Guest of honor invited by Now Finance Channel - Forex Reports

-Guest of honor invited by i-CABLE Finance Info Channel - Forex Opportunities

-Guest of honor invited by ViuTV - Investor Smarter Group

-Columnist of Finance and Forex Market of Ming Pao

-Presenter of Finance and Forex Forecast of Ming Pao

-Presenter of Investment 36 Stratagem and Technical Analysis in 1 Min of Ming Bao Finance

-Appointed lecturer of Ming Pao Investment Seminar and Paid Course

-Author of the best seller Investment 36 Stratagem

-Columnist of Forex Expert, Forex Analyst, Marathon Weekly of ET Net

-Guest of honor of Open Good Morning of ET Net

-Guest of honor of Metro Finance Channel - Market Opening, Instant

Market Fighting, Guangdong-Hong Kong Finance, Finances Power, Market

Analysis

-Guest of honor of New Era of Investment of RTHK

-Columnist of Capital Commodities of Capital Weekly

-Guest Presenter of Wang Guanyi Online Finance Channel - Fund and Commercial Bond

-Columnist of Wealthub Finance and Investment Smart Platform of Enrich Culture

-Guest presenter of Weekly Investment in the World of Enrich Culture

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