GBP/USD picks up bids above 1.3200 on fresh Brexit optimism
GBP/USD is on the bids near 1.3225, intraday high of 1.3233, during the early Asian session on Tuesday. The cable rose immediately after The Sun rolled out news favoring odds of the soft Brexit. Also supporting the pair bulls could be the broad market optimism backed by the coronavirus (COVID-19) vaccine hopes.
Although UK Brexit Minister David Frost tells PM Boris Johnson to expect a trade deal with the European Union (EU) early next week, fears over another brake in the talks were also spotted in The Sun. The reason could be traced to the continuous deadlock over fisheries and red tape, as cited in the news, which pushes both sides to “get real”.
GBP/USD Forecast: Pound is weaker on Brexit woes
The GBP/USD pair peaked for the day at 1.3242 amid the ruling upbeat mode but is ending the day in the red sub-1.3200, as the pound got hit by discouraging Brexit-related news. An EU official said that it might be too late already to clinch a trade deal, while UK PM Boris Johnson’s office said in a statement that they are confident that the UK will prosper if they fail to reach a trade deal with the EU.