27/11/2020

Sterling remained at three month highs against the US dollar


GBP

Sterling remained at three month highs against the US dollar on Thursday as dollar weakness offset uncertainty surrounding Brexit. Investors are looking for progress on a trade deal between the UK and the EU, but this week there has been little developments with face to face talks postponed.

Reports are suggesting that EU Chief Negotiator Michel Barnier has apparently called a meeting for ministers surrounding the issue of fisheries. With little developments this week, this news could be positive for the pound moving into the end of the month with the deadline to secure a deal fast approaching.

Fisheries has been a key stumbling block to a deal being reached, with the UK wanting to fully reclaim its waters by EU coastal states. This development could be very positive for the pound but it depends on what the EU are prepared to offer on this matter.

Officials from both sides are stalling on two main issues of fisheries and fair competition, but neither so far have shown a willingness to shift enough on either to make way for any breakthrough. Talks are set to continue over the weekend going into next week.


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