The British pound hit $1.3162 today, level last time seen in September 8th, after Bank of England deputy governor Dave Ramsden announced that the interest rates will not be lowered below zero in the near future as the UK economy and the financial system are already grappling with the effects of the pandemic. However central bank will keep the appropriateness of negative interest rates under review and make use of them if needed.
On the Brexit front EU chief Brexit negotiator Michel Barnier told the European Parliament that a trade deal with UK was within reach if both sides are willing to work constructively, and are ready over the next few days to resolve the sticking points. According to Bloomberg, trade talks are on the verge of resuming after positive contact between the two sides, three people familiar with the discussions said. A decision could come in the next 24 hours, with negotiators ready to sit down immediately with the goal of finding a deal by mid-November, according to the people, who spoke on condition of anonymity because the talks are private.
Also comments from PM Boris Johnson lifted market sentiment. Johnson has indicated today that he does not want a full shutdown across the UK. In his opinion, such actions lead to permanent damage to the economy and social health. In his opinion, the current actions concerning the introduction of local and regional restrictions are already successful. It is worth noting, however, that in recent days the number of cases in Great Britain has exceeded 20,000.
GBPUSD is at its highest level since September 8. Source: xStation5
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