The GBP INR exchange rate is trending higher today as it was announced that the UK and the EU had struck a deal over Britain’s exit agreement.
Pound (GBP) Rallies as Brexit Talks Set to Move on to Trade
Sterling sentiment raced higher overnight on Thursday as it was announced that the UK has struck a deal with the EU to finalise Britain’s exit agreement.
In a press conference in Brussels earlier this morning European Commission President Jean-Claude Juncker confirmed that ‘sufficient progress’ had been made in talks to open the way for trade talks to finally begin.
The news was a huge relief to markets, after the collapse of a deal earlier in the week prompted fears that another impasse in talks could have led to trade discussions being delayed until 2018.
However while the UK may have finally managed to have come to an agreement over how it will leave the EU it now faces the challenge of negotiating its future relationship with the EU, a task that may prove to be significantly more complex.
Catherine McGuinness, policy chairman of the City of London Corporation said;
‘Christmas has come early for financial firms with the news that Brexit negotiations can now move to Phase 2. Government has made a bold but necessary step forward. But the hard work starts now.’
GBP INR Exchange Rate Forecast: BoE Policy Meeting to Dent Brexit Gains Next week?
Looking ahead to next week the GBP INR exchange rate is likely to continue to float higher in the first half of the week as optimism over progress in Brexit lifts the Pound.
However Sterling may find itself under some pressure in the tail end of the week as the Bank of England (BoE) holds its latest policy meeting.
With the BoE having only just voted to hike interest rates last month economists are not expecting any altercations to the bank’s monetary policy on Thursday, however investors will be eager to learn if the recent Brexit agreement will have altered the bank’s outlook for interest rates in 2018, with any hints that rates will remain unchanged next year likely to damage the appeal of the Pound.
Meanwhile the Indian Rupee may strengthen at the start of next week’s session as India’s latest trade balance figures are expected to show that the nation’s trade deficit narrowed in November.
Current Interbank Exchange Rates
At the time of writing the GBP INR exchange rate was trending around 86.417 and the INR GBP exchange rate was trending around 0.0115.