GBP/USD: Pound supported fiscally

The cable is holding onto gains amid hopes for fiscal stimulus, as investors are shrugging off heightened Brexit rhetoric, Yohay Elam from FXStreet reports. 

Key quotes

“The perceived willingness of Prime Minister Boris Johnson to open the UK's purse strings continues having a positive impact on the pound.”

“Investors assume that if Johnson moves forward with infrastructure spending, the government's stimulus will relieve the Bank of England of its need to cut interest rates.” 

“Jean Yves le Drian, France's foreign minister, said that both sides will ‘rip off each other’ in talks. David Frost, Britain's top negotiators, is set to present more details about the UK's stance and according to excerpts released to the press, it will contain new demands on labor rights in the post-Brexit world.”

“So far, pound/dollar seems relatively unaffected by developments related to the respiratory disease but the news is coming out thick and fast.”