Sterling likely to be shaky in December before gaining in 2021: Reuters poll

04.12.2020 - Davydova Maria
Sterling likely to be shaky in December before gaining in 2021: Reuters poll

Sterling likely faces a rough December as Britain’s transition period ends on Dec. 31 and still has yet to agree on a trade deal with the European Union, a Reuters poll said.

The British pound has been shaky since the country decided to leave the European Union bloc in 2016, with the currency going up and down since then, but diplomats reported on Thursday they were looking into closing a trade deal with the U.K. by Friday or over the weekend.

Presently trading over $1.34, medians in the Nov. 30-Dec. 3 poll said it would trade between $1.31 and $1.36 this month. Over the euro, the British pound will trade between 88 to 91 pence.

Derivative markets fell on Thursday as investors weighed doubts of a trade deal agreement between Britain and the EU, dragging market optimism of Britain being the first country to approve the Pfizer-BioNTech COVID-19 vaccine.

However, successive Reuters polls said the two parties would reach an agreement before the year ends. More so, 50 foreign exchange strategists suggested the pound would climb to $1.39 in a year’s time, stronger than the $1.35 forecast given last month.

The poll concluded that against the common currency, the pound will be at 89p in a year.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?