Post-Brexit deal, sterling's rally expected to moderate in 2021

Published Mon, Dec 28, 2020 · 09:50 PM

Singapore

AS the sterling pound (GBP) settles to more sensible levels following Christmas eve's Brexit deal, analysts largely agree that the pound's rally in the lead-up to the deal signing cannot be sustained, and any appreciation next year will be milder.

Stephen Yeo, forex manager at Phillip Futures, believes the GBP/USD could reach a monthly high of around 1.40 in the long term, while the pound has the potential to climb near 1.8250 against the Singapore dollar (SGD) on vaccine developments, free trade agreements and a weak greenback.

At about 6.15pm on Monday, the GBP/USD was at 1.3542. The currency pair had seen huge swings and hit more than 1.36 in the two weeks preceding the deal signing, while the euro and SGD depreciated against …