The Brexit factor is about to re-emerge for sterling. However, global market conditions overshadow this theme for now. A relief in risk sentiment could allow the GBP/USD pair to recover to the 1.2250/2300 region, economists at ING report.

Not much impact from Brexit headlines

“PM Boris Johnson published a plan yesterday to give ministers the power to unilaterally suspend parts of the Northern Ireland Protocol between the UK and the EU. This is surely a thread to keep an eye on as it might exacerbate the ongoing bad momentum for sterling. However, global market conditions are likely to overshadow the Brexit factor for now.”

“Cable may correct slightly higher (to the 1.2250-1.2300 area) today if risk sentiment takes a breather.”