Wednesday, October 21, 2020

Aggressive Pound Back - EU Have You Said Something?

 The pound soared at the start of the European session after European Union (EU) Brexit Consultant General Michel Barnier reiterated his commitment to a Brexit trade agreement.

Barnier also showed the EU's readiness to discuss all subjects based on the legal text and increased prospects to resume Brexit talks.

According to Barnier, the EU's stance on Brexit will not change and remains determined to find the necessary compromises until the last day of talks.

At the beginning of the European session, the pound rose to its weekly high with trading around the 1.30475 price level against the US dollar.

The pound sterling trade previously recorded a modest increase in the Asian session after being backed by a weak US dollar following optimism that a deal in the US stimulus package could be achieved has prompted investors to turn to more risky assets.

Investors in the European session were shown by UK inflation data showing an increase in September. However, with the surge in Covid-19 cases and the recent sanctions imposed, it is likely to return to the UK economy from recovery.

Meanwhile, Prime Minister Boris Johnson will reportedly announce new stricter restrictions in South Yorkshire to enter Level 3, England's highest level of sanctions.