Sterling reaches four week high against the Dollar


Sterling rose to a one month high against a broadly weaker Dollar, but failed to gain against the Euro as Brexit risks continue to weigh on the pound.

Britain and the European Union launched their fourth round of virtual post-Brexit trade talks in an attempt to make some progress towards securing a trade deal. As it stands, talks appear to be at an impasse with disagreements over fisheries and the level playing field.

Comments from Bank of England governor Andrew Bailey also weighed on the GBP as he advised banks to prepare for a no-deal possibility.

The reopening of some companies in the UK did provide optimism for the pound with lockdown restrictions easing which has slowed down the pace at which the UK economy was declining.


The US Dollar fell to an eleven week low against a basket of currencies on Wednesday, as optimism grows that the worst of the economic downturn stemming from the global spread of the coronavirus is over.

The improving risk appetite has reduced demand for the safety of the greenback, which usually benefits from safe haven buying when markets are volatile and investors are reluctant to take risk.

Key announcements

12:45 – EUR – Main refinancing rate – Unchanged at 0%
12:45 – EUR – Monetary policy statement
1:30 – EUR – ECB press conference
1:30 – USD – Unemployment claims

Why choose RationalFX?

Based in the heart of London’s financial district Canary Wharf, RationalFX has traded over $10billion in currencies across the globe. Take advantage of our competitive exchange rates, market expertise, suite of FX products and online payment platform when you make bank to bank transfers in over 50 currencies worldwide.

Whatever your reason for making overseas payments, we’re confident our currency specialists can save you time and money while providing peace of mind. Call our team now on: +44 20 7220 8181