All countries are suffering the COVID-19 consequences. Despite the fact that it is a global problem, the pandemic is considered to be a temporary phenomenon. In the UK, the lockdown caused a 20% drop in GDP, but this did not greatly affect the British currency. As new cases of coronavirus are rising again, traders are losing their appetite for risk assets. Therefore, central banks and governments are ready to provide stimulus. At the same time, markets rely on scientists who will develop the vaccine.
According to Standard Chartered analysts, Brexit has a significant impact on the pound sterling. They consider the British pound vulnerable to the UK's withdrawal from the EU without a deal. The pound may rise to the level of 1.40. Experts also believe that a compromise on the Brexit issue will be more profitable.
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