Sterling rises above $1.24; short positions up for 12th week running

Sterling rises above $1.24; short positions up for 12th week running

01 Jun 2020 02:02 PM
 

The pound rose to three-week highs against a broadly weaker dollar in early London trading on Monday as Britain eased some lockdown restrictions, but the market's net short position on sterling is the largest in more than five months.

New rules designed to ease the lockdown in England came into force on Monday, even though scientists warned that, in the absence of a functioning system to track new outbreaks, the move was risky.

The new rules do not apply to Wales, Scotland and Northern Ireland.

A fourth round of trade talks on relations with the European Union following Britain's departure from the bloc will start this week. Britain has until July 1 to ask for an extension to the current transition period which is due to end in December.

The pound is being weighed down by a number of factors: Britain's high COVID-19 death rate, a lack of progress in Brexit negotiations, a bleak economic outlook, and the Bank of England (BoE) considering negative interest rates.