Will the pound continue falling sharply?
Yesterday, the most important thing in the Forex market was the sharp decline in the value of the British pound. The British pound weakened by about two percent in one day. The proposed agreement between Teresa May (British Prime Minister) is at serious risk. Britain’s senior negotiator at BREXIT has resigned and has disrupted the process of negotiations on the UK’s exit from the European Union. Recent events indicate that the draft BREXIT agreement is being supported by the European Union, but UK officials do not support this draft.
The UK negotiator, Raab, in his resignation letter said the BREXIT draft would jeopardize the integrity of the UK, which is why he can not support the BREXIT agreement. In the current situation, it is almost impossible to approve the BREXIT agreement in the British Parliament. Recent events can lead to the end of the Teresa Prime Minister. If the UK does not reach an agreement with the EU, the GBPUSD can reach $ 1.25 a barrel. Meanwhile, weak retail sales in Britain have also damaged investors’ expectations for the second consecutive month. The pound can only grow when Teresa can miraculously win the parliamentary vote, otherwise the pound will have a downside.
Fundamental Analysis of the American Stock Exchange
After the weakening of the US stock indices, we saw a recovery in the market, with US stock indices closing in positive territory on Thursday. Growth in stock indices showed an improvement in investor sentiment, as the CBOE VIX index, which reflects investors’ fears, fell by 6%.
Published news on US-China trade relations was one of the factors affecting the market. As the stock index of the S & P 500 industry grew by about 25%. A market analyst has said that markets will be fluctuating for some time, but if trade tariffs are stopped and trade talks begin, they will have a positive impact on the market.
The stock of Apple, which has fallen for five consecutive days, has been slightly strengthened yesterday and supported the S & P 500 technology stock market. This index finished the day with a gain of 2.46 percent. In addition, light crude oil prices (WTI) have been rising for the second consecutive day and have supported the stock index of S & P 500 companies. Yesterday, the Dow Jones dropped by 83.8% at 25289 units. The Nasdaq index also increased by 72.7% to 7,259 units a day. The S & P 500 index also closed at 1.660 percent at 2730 units.