All forecasts can be safely flushed into the toilet, as the British again threw an unexpected focus, once again showing that the only thing you can be sure of is the unpredictability of the British. Yesterday evening, like a bolt from the blue, a message was said that the British government canceled today's vote on an agreement with the European Union and the date of the vote has not been appointed. This has already become the reason for the collapse of the pound and of the single European currency, as it makes the situation completely unpredictable and unpredictable. It is significant that, according to Theresa May, such a decision was made because of disagreements on just one issue - the border between Northern Ireland and Ireland. Allegedly, the unresolved issue makes it impossible to positive outcome of the vote. But the Labor leader in Parliament says something completely different, since, in his opinion, the agreement does not contain the most important thing - the question of trade relations between the UK and the European Union after the divorce proceedings are completed. He added that Theresa May should either not interfere or resign since she herself is not able to solve the most important issue in this process.
In other words, the government headed by Teresa May and the parliament even speak different languages. Although, the Prime Minister herself assured that trade issues are still under negotiation and a solution will definitely be found. The British parliamentarians do not intend to turn into Aboriginal people selling land for glass beads because they themselves have turned this many times and know the price of promises and stories about a bright future. Their price is zero since, in his opinion, the agreement is not the most important. The question of trade relations between the UK and the European Union after the completion of the divorce process.
The fall of the single European currency, after the pound, is explained only by one thing - the growth of uncertainty. After all, the current version of the agreement, as well as its absence, is beneficial to European countries and companies but the British again turned the table upside down, and what will happen next is impossible to predict.A number of European countries will most likely take advantage of the situation and will in every way impede the achievement of any agreements on trade relations. Thus, it is most likely that the UK will leave the European Union without an agreement, which will seriously damage the British economy.
After such a large-scale fall, it is worth waiting for a rebound, and any macroeconomic data will be interpreted within the framework of this idea. Moreover, it is not even necessary to invent anything because forecasts clearly indicate a weakening dollar. In particular, the labor market data in the UK can show the incredible stability of all indicators. However in United States, producer price growth should slow down from 2.9% to 2.5%, which is on the threshold of inflation data and against the background of the Fed's hints that the refinancing rate may be left unchanged in December.
The euro/dollar currency pair, like its counterpart pound/dollar, showed a downward movement from the level of 1.1140 to the value of 1.1350. It probably suggest the formation of a rollback towards 1.1390/1.1400.
The currency pair pound/dollar on the information background flew down from the level of 1.2770 to the level of 1.2500. It is likely to assume that after such a rally, we will see a pullback towards 1.2620.
