Analysts at Citibank point out Sentiment remains bullish in sterling with the combination of the most recent (positive) UK COVID developments, a possible Brexit announcement this week (or next) and a less negative rate impetus from the Bank of England together with more fiscal stimulus from the UK government. Key Quotes: “There’s no doubt that GBP is cheap based on traditional PPP, which sits around 15% below its long term average. So arguably, despite the fact that the UK has lagged the G10 complex in terms of economic momentum throughout most of the year, the currency has been reasonably supported by its cheap valuation. Going forward, widespread distribution of a vaccine, and an agreement on a Brexit deal can support GBP. A Global economic recovery in 2021 as a result of a vaccine could see the UK begin to catchup. This also reduces the probability of the MPC moving policy rates into negative territory.” “GBPUSD found support at 100dMA. The pair may challenge 1.3482, with support at 1.2982.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Institutional investors are paying $2,750 for Litecoin as the price premium widens FX Street 3 years Analysts at Citibank point out Sentiment remains bullish in sterling with the combination of the most recent (positive) UK COVID developments, a possible Brexit announcement this week (or next) and a less negative rate impetus from the Bank of England together with more fiscal stimulus from the UK government. Key Quotes: “There’s no doubt that GBP is cheap based on traditional PPP, which sits around 15% below its long term average. So arguably, despite the fact that the UK has lagged the G10 complex in terms of economic momentum throughout most of the year, the currency has been reasonably supported… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
