On Monday, the pound sterling fell to another low, reaching its lowest level since March 2017. Investors are increasingly concerned that Britain is moving toward a chaotic exit from the European Union without any deal with the bloc. On Sunday, high-ranking officials said that the government of new Prime Minister Boris Johnson is working on a scenario if the EU does not revise its Brexit deal, and is stepping up preparations for leaving the bloc without a deal on October 31.

This morning, the EURUSD pair was noted at the maximum value from the middle of this month - 1.1214. This reaction is due to the defeat of the populist and far-right parties in the past elections to the European Parliament, contrary to forecasts. According to the results of the elections, 80 percent of the seats in Bruxelles is left to the pro-European parties, which will support the single European currency.

The American currency shows stability, despite another exacerbation of the trade war with China. We can’t say the same about GBP. The prospects for the British pound do not look very optimistic. Today, for the British currency is expected to be quite a busy day in the economic calendar. The data on CBI industrial trends for May will be released in the second half of the day.

GBPUSD fell to a close to four-month low and is currently trading below 1.28. It seems that the pressure on the Prime Minister Theresa May did give its ‘fruits’ - according to British media reports, the politician announced that she would resign next month, immediately after the last vote on the EU deal with Brexit.

The last day of the current trading week promises to be stressful enough for the British currency. Traders expect to release statistics on business investment and GDP for the 1st quarter. Data on the volume of industrial production and trade for March will also be released later in the morning.

EURUSD remained to some extent depressed at the beginning of this month, modestly in the range of 1.1150 levels. Traders were pleased that the pair had gained more confident positions around the 1.1200 mark. Nevertheless, it remains quite vulnerable against the background of ongoing trade disputes between the US and China, as well as ambiguous data from the European economy.

Today, early morning, the Reserve Bank of Australia decided to keep interest rates unchanged at 1.5%. The regulator based his decision on the fact that the recent release in terms of inflation did not meet expectations. In addition, the economic uncertainty within the country makes itself felt by a decrease in household spending and housing prices.

As expected by our recent forecasts, the single European currency is under strong pressure from the US dollar and, at the moment, is actively selling in the foreign exchange market. The reason for this is the expectation of strong US labor market statistics coming out today. NFP forecast >

The rate of the British currency in the first half of trading on Thursday declines against the US dollar amid continuing political uncertainty in the UK. The pound can expect support from a vote of confidence in the current government, as expressed by the country's parliamentarians the day before. As of the morning, the pound sterling to the dollar was down to 1.2868 dollars from 1.2881 dollars per pound at the last close. The rate of the single European currency to the dollar fell down to 1,138 dollars per euro from the value of the previous close of 1,1397 dollars per euro.

GBP recovered some ground on Tuesday from the 20-month lows it hit after British Prime Minister Theresa May called off her Brexit vote, as dollar weakness encouraged some traders to buy the pound. May’s decision on Monday initially sent the pound tumbling 2-1/2 cents towards $1.25, its lowest level since April 2017, before it recouped some losses - though the moves were exaggerated in thin trade. GBP has been struggling to equilibrate between the heightened probability of either no deal or no Brexit with the odds of both increasing on Monday.

As the Brexit deadline comes closer, market watchers are increasingly more pessimistic about a positive Brexit outcome. A breakthrough, particularly on trade, is needed but as negotiations resumed today in Brussels, the mood is a cautious one. The EU wants to avoid sending a wrong message to Britain, as well as to financial market, in regards to a major progress. Both parties hope that by the end of the year they will come to an agreement, but EU members including Germany asked negotiators not to rush into any preparations for documents regarding trade.

Today early in the morning, during the Asian trading session, GBP fell by more than 6% in just two minutes against the US dollar, reaching the level of 1985 and shocking even experienced traders. “Initially I have doubts about what I saw on my computer screen,” commented Kenji Yoshii, a foreign exchange strategist at Mizuho Securities.

The British Pound had a very volatile trading week which saw the British currency rally nicely, drop sharply and rally again today. Plenty of economic data was released during the week so far and forex traders have reacted to each individual report which is why the British Pound saw so much activity.