GREAT BRITAIN POUND (GBP) STERLING STRENGTHENS TODAY AFTER LATEST BREXIT NEGOTIATION POSITIVE DEVELOPMENT – BETTER COVID-19 VACCINE DISCOVERY REPORT

23.11.2020
Market News
23rd Nov. - A statement issued by the Prime Minister of the United Kingdom, Borris Johnson this week in connection with the latest BREXIT talks gives confidence in strengthening the GBP. GBP today jumped higher against several other major world currencies such as the US Dollar, Japanese Yen, and Euro. UK PM Borris Johnson has stated that he will personally intervene in the EU / UK talks this week. He will reportedly speak directly with the President to the European Commission, Ursula von der Leyen, which is expected to take place on Tuesday this week. This initiative was taken up by Borris Johnson after seeing the deadlock still haunt the BREXIT negotiations. If both parties can find a consensus faster, surely the geo-political uncertainty in this European zone will be resolved and it will definitely give confidence to investors and traders for the future of the European zone. The value of the GBP rose 0.5% against the Euro, while rising 0.6% when backed against the US Dollar. The EUR / GBP counter traded at 0.89000 today, compared to 0.91000 last week. As for the GBP / USD counter, the surge started in early November 2020 where at the beginning of this month the price traded at 1.28500 and today rose to 1.33860. Apart from the news of the ongoing and deadlock BREXIT negotiations, the news of the discovery of the vaccine by AstraZeneca and Oxford University also played an important role in strengthening the GBP. A report released today shows positive and encouraging laboratory test results affecting global confidence in the situation against Covid-19. In contrast to vaccines tested by Moderna and Pfizer, vaccines invented by AstraZeneca are reportedly cheaper and vaccine management procedures are also easier to distribute as they do not need to be stored in the refrigerator for distribution purposes. The UK government has ordered 100 million doses of the vaccine, if approved, to be used next year. AHMAD FAIZUDDIN BIN RAZALI
CHIEF ANALYST OF CDG GLOBAL