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Felicia Tan
in
Forex
July 31 18:12

GBP overcame $1.30 despite analysts' pessimism

Brexit and economic prospects leave analysts and investors bearish feelings about the sterling.
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GBP went up against USD and EUR, successfully testing a key level of US$1.30, but Brexit uncertainty and the economic impact of the Coronavirus pandemic made investors cautious about the long-term outlook for the currency.
US dollar, whose decline accelerated this month, changed direction and began to strengthen in the Asian session.
But the British pound still spiked, touching new four-month highs against the American currency and recouped some recent losses against the euro.
Against the dollar at 10:15 GMT, the pound traded at US$1.3003, which is 0.1% higher than the closing level of New York. It rose by about 0.4% against the weaker euro, reaching the level of 90.44 pence.
The pound rose by 4.8% against the dollar this month, but only by 0.2% against the euro.
Investors tend to be bearish on the pound, as the UK and the European Union have made little progress in developing a trade agreement after Brexit. Britain withdrew from the EU in January and the transition period ends December 31.