For Brits looking to escape the UK in an increasingly wet August, the pound might offer some relief with a recovery against the euro.
Sterling ended a record run of losses against the common currency this week and analysts are cautiously optimistic on its near-term prospects. Growing resistance among opposition lawmakers to a no-deal Brexit has led traders to cut the probability of the UK leaving the European Union on October 31, while a lot of pessimism is already baked into the market by fund managers.
Sterling has had a tumultu-ous few weeks since Boris Joh-nson succeeded Theresa May as UK Prime Minister, with a promise to deliver Brexit on October 31 “do or die”. That saw the pound extend its slide against the euro to 14 straight weeks and had fund managers and strategists considering the risk of a plunge to parity against the dollar.
With the pound recovering 2 percent in the past five days to 91 pence per euro and bouncing above $1.21 after Labour leader Jeremy Corbyn sought rival parties’ support, the market’s bearish view might be coming under pressure, according to an analyst.