The European Union final summit regarding the migration crisis is taking place today, and expectations of further advance in Brexit are set aside, despite recent requests from EU and UK businesses to show measurable progress in the arrangement (i.e. Irish customs border).
Accordingly, industrials are becoming nervous, such is the case of Airbus' (LON:0KVV) recent statement warning of leaving the country if no deal would be found until 2019. Private company Heathrow Airport Holdings, went one step further, announcing its departure from Oxford headquarters to the Netherlands, in order to remain under EU law after Brexit.
Since Brexit negotiations are placed at a lower priority on Europe’s agenda, disappointment is felt on the pound side. Although ths Bank of England's interest rate increase (2 August 2018 earliest) weighs on the balance, we would rather favour a bearish bias for the GBP/USD pair. Indeed, as one of the weakest currencies on a quarterly basis, GBP/USD is currently trading at November 2017 range, valued at 1.3090 and heading along 1.3070 in the short term.
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