GBP/USD: Sterling has room to rise on Brexit hopes

Brexit hopes, the scandal around Dominic Cummings, and Sino-American relations are in the mix. Yohay Elam, an analyst at FXStreet, thinks the cable has potential to extend the gains seen yesterday.

Key quotes

“While Brits are closely following the latest developments around Dominic Cummings – the special adviser at Downing Street who violated the lockdown – an EU concession around fisheries helped propel the pound higher.”

“The topic of negative rates is refusing to return to the shadows. Andy Haldane, Chief Economist at the BoE, said that sub-zero rates are not that close. The pound received some support from Haldane's comments.”

“Sino-American tensions are intensifying with Washington moving toward decertifying Hong Kong as an autonomous region in response to China's proposed security law. The US and China are also at odds about technology but continue upholding the trade deal.”