Are there more gains for Sterling on the horizon against the Dollar and Euro? Sterling has seen short term recovery, temporarily sending cable back above 1.27 and 1.12 against the Euro.
Sterling has started to reverse the deeper losses seen in May due to anxiety over the prospect of a failure in Brexit negotiations combined with the global health crisis at hand.
However, in recent days both the UK and their European counterparts have specified their mutual enthusiasm to push forward with trade talks over the coming weeks and months. An Autumn summit between EU leaders on the matter looing to be the next big hurdle for markets to turn focus on.
Off the back of this news, it seems as though there is a short term easing of pressure on Sterling, which would largely indicate market support.
There is no doubt that COVID has changed the landscape of the Brexit negotiations (as reported last month in ‘COVID and Currency: The Brexit Effect’). Analysts at Goldman Sachs are indicating a potential 20% loss for USD on the horizon which, combined with positive Brexit sentiment in the market regarding negotiations, could suggest a bullish period for Sterling.
Speak to Privalgo in order ensure that you are maximising your opportunities with the recent gains for the Pound.
