FX.co ★ The European Union is increasing pressure on Britain

GBP / USD.

As expected, the speech of Prime Minister Teresa May on Friday was not a planned statement, but only a statement about her desire for closer ties between Britain and the European Union after the Brexit. PM May rejected the schemes of the "Canadian" and "Norwegian" cooperation. Perhaps, only a positive data on business activity in the construction sector of Great Britain could keep the pound from falling. The February Construction PMI showed an increase from 50.2 to 51.4, with a 50.5 expectation. Also, the general mood of dollar sales supported the British currency. The pound increased by 24 points throughout the day. However, news came this morning that the EU will push through the Canadian trade agreement scheme, adopted in due time (2016) as the basis for the Transatlantic trade partnership.

The business activity index in the service sector of Great Britain for the month of February is projected to increase from 53.0 to 53.3. If the US ISM Non-Manufacturing PMI came out expectably weak (58.9 vs. 59.9), it could help the pound to slow its decline. The main strength will be the overall strengthening of the dollar.

In the long term, the British pound is expected to be in the range of 1.3555 / 80.

* The presented market analysis is informative and does not constitute a guide to the transaction.