Brexit seems to finally advance in its processes, after having constantly been a stumbling block in the attempts of economic recovery in the United Kingdom. Now, with these hopes growing, the British pound is stabilizing in the Forex market.
The good news seems to come for the British economy. Well, because of the COVID-19 pandemic, the pound has had an uphill road in its recovery.
In addition to this, the Brexit process has been a clear obstacle in the advance of the British currency. And although expectations are now improving, doubt still hangs over the pound’s operations in the Forex market.
The pound sterling achieves a stabilization in its operations
British Prime Minister Boris Johnson and European Council President Charles Michel reported on Wednesday that some progress had been made in talks on a trade deal with the focus of a recovery from the pandemic.
However, significant differences between the two blocs still exist, and the European Union maintains its position on Brexit.
On top of that, the Bloomberg News report suggested that in the private sector, officials from both blocs were more optimistic about the likelihood of closing a deal before the Brexit deadline.
In this way, this position of the legislators had helped in the increase of the confidence about the pound sterling in the Forex market.
In the case of COVID-19 in the UK, the British government is considering additional local restrictions for the pandemic. This specific to parts of the north of England, as the second wave of infections accelerates.
Bank of England Governor Andrew Bailey said he did not expect the new wave to be as damaging as the first. And he also expressed optimism about the prospects for the Brexit deal.
Price of the pound sterling to date
At the time of writing, the British pound is trading peer to the dollar at 1.3041. Recovering its earnings from Wednesday to 0.8%.
Finally, although a deal remains the main focus in the EU’s discussions with the UK, some analysts consider that there is no chance of a return to the sterling of the past.
In addition to this, the uncompromising position of the United Kingdom prevents a deep and comprehensive relationship with the EU.
Sources of truthful information
All the information compiled in this article was obtained as an original source created by our editors at EnQuéInvertir.
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