GBP/USD to flip into the 1.37-1.40 region on a Brexit agreement – Westpac

Peak in coronavirus cases and hopes for at least a staged post-Brexit trade deal are pushing GBP/USD towards 1.37. Nonetheless, failure in trade talks could still flip the cable below 1.30, economists at Westpac apprise.

Key quotes

“The factors influencing GBP in the near-term are the clear signs of COVID-19 cases having peaked and the progress in EU/UK trade talks. The daily Covid case count has pulled back to a still high 18,213 on 25th Nov from over 30K earlier in November and the R-rate is back to 1, indicating that the lockdown will be relaxed on December 2, but still with tight and tiered restrictions.” 

“Of critical importance is the state of EU/UK post-Brexit trade talks. Face-to-face talks are now resuming and hopes remain that at least a staged deal can be struck in advance of EC’s 10-11 Dec Summit. A deal could still flip GBP/USD into the 1.37-1.40 area. However, the next two weeks remain critical.” 


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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD rises above 1.21 amid better market mood

EUR/USD has been extending its gains, recapturing 1.21 as the market mood improves. The German ZEW Economic Sentiment beat estimates with 61.8 points. Treasury Secretary nominee Janet Yellen's testimony is awaited.


GBP/USD clings to 1.36 ahead of Yellen's testimony

GBP/USD is edging above 1.36 as markets eagerly Treasury Secretary nominee Janet Yellen's testimony. The UK parliament is set to process the Brexit deal as Britain ramps up its vaccination campaign.


Gold recovers further from multi-week lows, climbs to $1845 region

Gold gained positive traction for the second consecutive session on Tuesday. A modest USD pullback was seen as a key factor that benefitted the metal. The risk-on mood, rallying US bond yields might cap gains for the commodity.

Gold news

Breaking: Ethereum explodes to new yearly high, validating upward price action

Ethereum has ascended to new yearly highs after breaking the recent peak achieved in January. The flagship altcoin is trading at $1,372 amid the push for gains eyeing $1,400. 

Read more

US Dollar Index: Downside pressure alleviated above 91.00

DXY met sellers in the 91.00 neighbourhood on Monday and now retreats to the 90.50 region on turnaround Tuesday.

US Dollar Index News