Gold 1866,49
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EURUSD 1,2185
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DJIA 29873,50
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OIL.WTI 46,26
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DAX 13414,885
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The coming year 2021 brings with it two huge risks to sterling at once. Withdrawal from the deal with the EU without an agreement + the new COVID-19 strain rapidly spreading across Britain.
GBP/USD
British Prime Minister Boris Johnson has rejected requests from Conservative Party lawmakers to extend talks with the EU in the new year 2021 on the parties’ future relations after Brexit. This was reported by The Guardian newspaper on Monday. “Our position on the transition period is clear. It will end on 31 December. Our decision will not change,” the paper quoted Johnson as saying.
If the parties do not meet each other, in fact, a full customs regime will be imposed on the borders of Foggy Albion from January 1. Of course, this will hit the economy, the UK background market and the pound sterling hardest.
However, this was predicted months ago. The Black Swan has come from a very different direction. The new COVID-19 virus strain has already led to flight closures with most EU countries. But this is just the beginning. If the situation continues in the same vein, a radical solution in the form of the closure of the Channel Tunnel to cars and a total ban on British citizens entering the EU is possible.
The first target for the English pound will be 1.30 in the Pound/USD pair, further things might just roll downhill. However, we have to keep in mind the following. A sharp decline of the American dollar is also possible in parallel. Therefore, from the speculation point of view, it is more interesting to look at the EUR/USD pair, which, in the short term, risks rising to parity.
What awaits us today?
14.30 US Personal Spending in November
14.30 US Personal Income for November
14.30 US Personal Goods Orders for November
16.00 New home sales in the U.S. for November
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