Cable surges to a 6-week high

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

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.