Sterling rockets higher ahead of the BoE Decision

By Peter Bukov|

Published: December 17 2020, 09:34 GMT+0

Sterling rockets higher ahead of the BoE Decision

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The pound has been rising nonstop since Monday, and it is up 360 pips from Friday’s close, with the GBPUSD pair trading 0.5% stronger on Thursday, seen at around 1.3570.

According to the politicians’ latest announcements, it looks like the Brexit deal could be getting closer. That is, of course, positive for the Pound.

European Commission President Ursula von der Leyen told the European Parliament in Brussels on Wednesday that “there is a path to an agreement now” on a deal, with fishing rights appearing to remain a key sticking point.

Later in the day, the Bank of England to keep everything the same – monetary policy should remain unchanged. However, as always, there are voices for more easing. Should there be no surprises, sterling might accelerate further, with the 1.40 level getting closer and closer.

From other news US, yesterday’s Fed decision to keep the monetary support for many quarters to come sent US indices to record highs, while metals also posted strong gains. 

The USD cratered, and the EURUSD pair is now well above 1.22, rising toward the 2018 highs near 1.25.