The British pound fell on today on rising concern that the Brexit transition period will end without a deal between Britain and the EU, and foggy economic prospects as the country emerges from its coronavirus lockdown, Reuters reports. The fact that the United Kingdom, now out of the European Union, will not be part of the bloc's 750 billion euro recovery package "is not helping the pound," said Kenneth Broux, head of corporate research at Societe Generale. On top of that, euro/sterling may be bouncing off the lows it fell to recently when central banks were possibly rebalancing their reserve requirements, said Broux. Sterling was last trading down 0.3 percent versus the US dollar at US$1.27 and versus a broadly stronger euro it was 0.6 percent lower at 91.13 pence. Broux said it was unlikely that euro/sterling was establishing a new range above 90, however, as those levels "typically don't endure a long time".

Source: The Standard July 22, 2020 12:33 UTC