Pound Rises as Traders Bet on Brexit Breakthrough Within Days
Article summary
Bloomberg) — The pound advanced to the highest level in three months as anticipation grows that the U.K. and European Union may strike a trade deal soon. Although we have heard this before, given the time needed for the EU to ratify the deal, this week is widely considered to be the final push.” […] The gauge dropped as much as 0.4% as of 11:02 a.m. in London, with a trader in Europe adding that early dollar-selling flows helped bolster the pound. […] That’s why analysts in a Bloomberg survey last month said the pound will likely rise to $1.35 by mid-2021 in the event of a Brexit trade deal, a relatively small move compared to the 5% drop they anticipate if negotiations fall through. […] They sent the cost of hedging a decline in sterling to the highest in two months.
