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Sterling Gains as Risk Sentiment Improves

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Demand for riskier assets on Tuesday kept sterling close to the twomonth high it reached the day before, with investors also hoping that this weeks Brexit negotiations will result in a deal.

News on Monday that AstraZenecas vaccine for the coronavirus could be around 90 effective boosted sentiment. British Prime Minister Boris Johnson said on Monday that he hoped almost all Britons at high risk from COVID would be vaccinated against the disease by Easter.

England will introduce a new system on Dec. 15 allowing passengers arriving from highrisk countries to take a COVID19 test after five days of quarantine and to be released from any further selfisolation if they test negative.

In addition, the onemonth full lockdown in England is due to end on Dec. 2, and transport secretary Grant Shapps is set to scrap blanket travel quarantine restrictions by Christmas so people can travel to highrisk countries to visit relatives.

The November flash purchasing managers index came in better than expected on Monday, adding to the optimism, although the number remained below 50, which represents contraction.

Monthend investment flows have curtailed gains in sterling and the pound should be trading higher on these developments, said Marshall Gittler, head of investment research at BDSwiss Group.

I think the pound could continue the gains next month, depending of course on how the Brexit talks go, he said.

The British pound was last up 0.4 at 1.3373, close to 1.3396, its highest…

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