The rate moved back towards a downward trend. In fact, factors supporting the pound weren't enough, despite increased resistance to Boris Johnson's plans. Despite everything, the no-deal scenario of leaving the EU remains the most realistic one. The only thing the opposition can do is overthrow the Prime Minister, but there is not much time left.
On the other hand, the Swiss franc, which receives support as a safe asset, despite the economic downturn in Switzerland, is currently the most preferred currency in the region for investors. During the period of strengthening of the pound, the CHF was under pressure due to negative macroeconomic reports from Switzerland. In particular, in August, the business confidence index fell to -37.5 points. Although this is not the lowest figure, it reflects the negative processes in the Swiss economy.
In the absence of macroeconomic reports on the British economy, the pound was completely influenced by the political situation and Brexit. At the same time, the risks are growing every day, and the strengthening of the opposition, which is going to hinder the actions of the government only increases the uncertainty and does not motivate people to invest in the pound. In this situation, we believe that the pound's decline will continue in the medium term. The MACD and Stochastic oscillators also signal to open deals on the trend.
