The British pound has been one of the top performing currencies in the past week. New talks in the UK on its trade relationship with the EU are positive for the pound sterlingaccording to Credit Suisse economists.
UK seeks Swiss inspiration
“What is new and striking is the internal conversation that seems to have started in the United Kingdom about the future of its relationship with the EU after Brexitwith conversations about “Swiss-style” agreements they are going around Although unlikely in practice, GBP may get a rare ray of sunshine there is, at long last, a debate on how to improve the UK’s trading relationship with the EU.”
“We have argued that EUR/GBP is likely to remain capped in the short term in a 0.8600-0.8800 range. Although we do not yet advocate a breakout, the most likely path for a GBP breakout in 2023 remains the possibility of a softer line in trade relations with the EU that allows for a better growth perspective. The bar remains high given the still hostile attitude of the ERG and the Conservative Party right, but this space should ultimately be watched as a potential source of GBP surprises to the upside.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
