Left Menu
Development News Edition

Pound climbs above $1.25 to 1-month high, Brexit hopes support

Reuters | Updated: 02-06-2020 14:02 IST | Created: 02-06-2020 13:36 IST
Pound climbs above $1.25 to 1-month high, Brexit hopes support
Representative Image Image Credit: Pixabay

Sterling climbed above $1.25 to its highest in a month against the dollar on Tuesday, as signs Britain might be willing to compromise on sticking points in a fresh round of Brexit negotiations with the European Union provided support.

Britain is expected to indicate flexibility over fisheries and trade rules if the European Union agrees to lessen its "maximalist" demands regarding regulatory alignment and fishing access, the Times newspaper reported on Tuesday, as a new round of talks kicks off. Britain has until July 1 to ask for an extension to the current transition period, which ends in December.

By 0743 GMT, the pound was trading 0.2% higher to the dollar at $1.2518, after hitting its highest since May 1 in early deals. Against the euro, it was up 0.3% at 88.86 pence.

"Despite what is likely to be a period of high Brexit headline risks for UK assets in the coming weeks and months, a report that the UK may be willing to compromise in upcoming Brexit negotiations - along with broad-based US dollar weakness due to the idiosyncratic risk posed by nationwide U.S. protests - is keeping the pound underpinned against the dollar," said Viraj Patel, FX and global macro strategist at Arkema. "The 100-day moving average for sterling-dollar is likely to provide some resistance as investors will want stronger fundamental conviction around the pound rally - and this may need better UK macro data following the lockdown easing or more concrete evidence of reduced Brexit risks."

Weekly positioning data for the week ended May 26 showed the market's net short position on the pound increased for the twelfth week running. The last time investors were this bearish on the pound was in the run-up to the December 2019 election.


TRENDING

OPINION / BLOG / INTERVIEW

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...

COVID-19: Weighing up the benefits and limitations of edtech platforms

Edtech companies shouldnt focus on merely pushing contents, but to provide an interactive, effective teaching and learning environment. ...

Videos

Latest News

Lockdown impact: Sobha's Q1 sales bookings down 37 pc at Rs 488 cr

Realty firm Sobha Ltds sales bookings fell 37 per cent during April-June quarter to Rs 487.7 crore due to the nationwide lockdown to control the COVID-19 pandemic. Its sales bookings stood at Rs 777.7 crore in the year-ago period. In the...

Sri Sri Tattva launches its store on the first social media super app Made in India - Elyments

Bengaluru Karnataka India, July 6 ANINewsVoir Sri Sri Tattva, Indias leading health and wellness and FMCG brand has tied up with Elyments to launch its e-commerce store via the social media application. Elyments is the first social media s...

Ganguly reveals why Tendulkar never took strike on first ball of cricket match

Former India skipper and current BCCI president Sourav Ganguly has revealed why Sachin Tendulkar never took strike on the first ball of a cricket match. Ganguly said that it was he who alwaysused to take the strike when the duo came out to ...

Akshay Kumar-starrer 'Bellbottom' to start shooting in August

Espionage thriller Bellbottom, starring Akshay Kumar and Vaani Kapoor, will start filming on location in the United Kingdom in August, the makers announced on Monday. Directed by Ranjit M Tewari, the story is set in the 1980s and is about ...

Give Feedback