Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Pound Climbs as Goldman Sachs Makes Bullish Call Amid Hopes for Brexit Deal

Published 05/10/2020, 20:42
Updated 05/10/2020, 20:46
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com - The pound moved higher against the dollar Monday on rising expectations the EU and UK will agree on a trade deal, with Goldman Sachs (NYSE:GS) forecasting both parties "likely" to reach an accord by early November.

GBP/USD rose to 0.34% to $1.2974.

Hopes for an agreement on a post-Brexit trade deal were boosted on reports EU chief negotiator Michel Barnier aims to hold talks with European coastal states to get more freedom to negotiate terms with the U.K. on fisheries, a key sticking point that has held back progress.

The sense of urgency comes just days after Prime Minister Boris Johnson and European Commission president Ursula von der Leyen, agreed to intensify Brexit talks to close "significant gaps" that stalled progress on talks.

The joint statement drew a bullish call from Goldman Sachs, urging clients to buy sterling.

"A joint statement issued on Saturday constituted a clear political signal that enough had been achieved to further intensify technical talks," Goldman said. 

The bank, however, did not completely take the prospect of a no-deal Brexit off the table, saying "perceived probability of ‘no deal’ will persist beyond the next European Council meeting in mid-October."

Without an agreement, the UK is set to leave the EU with no deal when the transition period ends on 31 December.
 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.