GBP/USD: Sterling has room to rise on Brexit hopes
|Brexit hopes, the scandal around Dominic Cummings, and Sino-American relations are in the mix. Yohay Elam, an analyst at FXStreet, thinks the cable has potential to extend the gains seen yesterday.
Key quotes
“While Brits are closely following the latest developments around Dominic Cummings – the special adviser at Downing Street who violated the lockdown – an EU concession around fisheries helped propel the pound higher.”
“The topic of negative rates is refusing to return to the shadows. Andy Haldane, Chief Economist at the BoE, said that sub-zero rates are not that close. The pound received some support from Haldane's comments.”
“Sino-American tensions are intensifying with Washington moving toward decertifying Hong Kong as an autonomous region in response to China's proposed security law. The US and China are also at odds about technology but continue upholding the trade deal.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.