Pound recovers but the mood stays bearish

Pound in recovery against the euro and dollar, but the British currency stays always on the recent lows, due to fears related to the possibility of a no-deal Brexit, on October 31st. A hypothesis that even Prime Minister Boris Johnson does not seem to exclude, committed as he is in his contingency plans for an exit without agreement.

The pound rose to 1.2105 against the greenback yesterday, before returning in the evening below 1.21 and up to 1.0813 against the euro, before falling back below 1.08. Among the traders, the bearish sentiment is confirmed, which could bring the pound up to parity with the euro on October 31st, according to the forecasts of various experts.

To really reverse the trend, traders expect an open attitude of Johnson to move forward on the path traced by Theresa May, with the agreement signed with the EU last November then rejected three times by the British parliament. Signals, however, that the current prime minister does not seem willing to give.