After strong nervousness last week, the currency is bouncing back on hopes of agreement.
The pound sterling is yo-yoing, according to the jolts of the Brexit negotiations. It rebounded on Monday, nearly 1.5% to 1.34 dollars, on new hopes of a free trade agreement, after having plunged at the end of last week due to the.
“The past two weeks have reminded markets of the looming risk of Brexit, which had largely taken a back seat this year to the consequences of the pandemic,” says Lee Hardman, foreign exchange analyst for MUFG bank in London.
After last week’s volatility, forex traders are determined to believe in an amicable solution between the UK and the EU on their future trade rules. “The market is betting on a deal”, observes Vasileios Gkionakis, head of foreign exchange strategy at Lombard Odier.
“There is movement, it’s good”, European Commission President Ursula von der Leyen said on Monday…