GBP has recovered it’s overnight losses against The US Dollar with the confirmation of Joe Biden as The US President. It is strongly believed that Biden’s policies around The U.S Budget and Trade deficit will lay heavily on The U.S Dollar in the near term.
Sterling has failed to rally against The EUR since The Brexit deal was signed on Christmas Eve, with rumours the trade deal is of bare bones.
Along with a third lockdown for The UK and the economic pressures that come with it, there is ever growing pressure for The BoE to cut interest rates to 0% no later than August.
Paving the way for negative interest rates later down the line. Since the start of the year GBP has lost 1% against The Euro off the back of the Break-away from Europe and the ramifications that brings.
There is also an extremely high possibility that Scotland will push again with their independence vote to leave The UK and re-join Europe as well as rumours circulating that Northern Ireland will also look to re-join The Republic due to the weakness of The Brexit Deal secured by Boris Johnson just a few weeks ago.
All of this only serves more pressure to Sterling in a time where the markets have already been challenged economically with Covid-19 and will continue to struggle throughout 2021 particularly against The Euro.