The pound sterling currency strengthened against the weak US dollar and strengthened against the euro currency on Tuesday following the market gave the foundation on the development of trade negotiations between Britain and the European Union (EU).
Britain's Chief Negotiator David Frost has informed Prime Minister Boris Johson that he can expect a trade agreement as early as next week with the possibility of both parties compromising as early as next Tuesday.
This report comes after reports that one of the backbone of Brexit, Dominic Cummings will resign from the kingdom. This has led some researchers to suggest that there is a higher likelihood of agreement being reached.
However, Macro strategist at EMEA on State Street, Timothy Graf, said that while there was a "no deal" possibility, the possibility of trade negotiations suggesting positive results is still there. In addition, most administrators from both sides also insisted on this.
During the same period, he believes that the long-term prospects for the pound currency are less bright as Brexit can still have an impact on supply chains and trade.
The currency of the pound is reported to have settled 0.54% against the US dollar by 8.30 p.m. Also a factor in the strengthening of the sterling currency was the depreciation of the US dollar currency and the follow-up in the Covid-19 case in the United States.
