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Felicia Tan
in
Forex
June 23 10:31

Some people are surprised GBP still hasn't shown the rally

Brexit and the lack of prospect of negative bets seemed to have caused the rally.
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GBP went up on Monday, recovering from a 3-week low in Asian trading, helped by weakening USD, hopes for a deal after Brexit and expectations of more positive economic data.
However, growth against EUR declined after the UK industrial production showed the largest quarterly decline in the last three months before June.
Britain should strike a new trade agreement with the European Union by the end of the year, when the transition period after its withdrawal from the block is coming to an end. Although much is yet to be discussed, both sides have shown convergence. Last week, French President Emmanuelle Macron told British Prime Minister Boris Johnson that France was committed to reaching an agreement.
GBP rose by 0.3% to US$1.2386, having previously fallen to US$1.2337, its lowest level since June 1. The British pound remained at the same level of 90.46 pence against EUR.
The UK is expected to release new action plan on COVID virus this week and may relax the 2m social distance rule so that eateries can accommodate more people.
Some analysts believe that GBP should have grown even more, especially after the Bank of England eased expectations of the introduction of negative rates and slowed down the pace of quantitative easing in response to improved market functioning and signs of economic recovery over the past month.