Pound up on vaccine and Brexit hope

The pound continues to be one of the best performing currencies of late. Boosted by news that British Prime minster Boris Johnson is set to make a political intervention in Brexit trade talks with the hope of achieving a deal by the end of next week. You may be thinking (and rightly so), ‘well with heard this before’ but with little time left to get it done before the 31st December deadline, they is far more optimism that talks will now finally bear fruit in the form on agreed trade deals between the UK and EU. The mood in the markets was also lifted by news from Astra Zeneca/Oxford University who have confirmed they have a vaccine that is 70% and 90% effective, with its big advantage being that it will be cheaper that the other vaccines recently reported and that it can be stored at room temperature making it easier to transmit around the world.

The positivity has seen the pound move up to some of its highest levels we have seen this year. Gains of nearly 1% against the USD has seen the pound move up to 1.3370, getting closer to levels not seen since June 2018. The pound has also managed to get above 1.12 against the euro nearing its highest levels seen since May.

Positive vaccine news would tend to support the pound as the UK economy is more services-driven and more exposed to lockdowns and restrictions on travel, social distancing and consumer confidence," says Neil Wilson, Chief Market Analyst at Markets.com

After nearly 5 years of debating Brexit, the final outcome remains the markets biggest focus for the UK and pounds value, and the chances of a deal being agreed as the deadline fast approaches continuing to improve. The combination of the vaccine and a Brexit deal seem to behind the pounds positive gains.

What we know have learnt over the years and even more so this year, even when things are looking positive things can change very quickly and so can the direction of the currencies.

Keeping up with the news and the currency movements can difficult for most, if you are looking to send or receive international currency payments, then be sure to get in touch with one of experts and Escape Currencies who can, keep an watchful eye on the latest news and currency movements for you, and make sure you are kept updated when it matters most to help you move your currency when the price is right for you.

To speak to one of our traders to discuss your requirements, give us a call today on 0204 524 2780 or send an email to info@escapecurrencies.com