British Pound Outlook The British Pound advanced against the Euro and a host of other major currencies on news of progress in post-Brexit trade negotiations, however renewed financial market turbulence following the announcement of new major lockdowns in Europe has pushed the Dollar higher across the board. This safe-haven driven demand for the Dollar could continue over coming days say analysts. “The rush for the exits will continue for the time being. The impressive dive in European markets over the past few days has revealed how dire sentiment is towards this part of the world, with already weak GDP forecasts likely being hastily revised yet lower thanks to the return of lockdown policies. The developments on Brexit are therefore providing some welcome downside insurance for the Pound which has in the past proven highly sensitive to covid-19 developments: the Pound’s lowest point of 2020 against both the Euro and Dollar was reached in the February-March period when markets melted in response to the panic triggered by the first wave of covid-19 infections. The UK currency therefore remains prone to declines in the event of a second wave, which appears to be transpiring. Positive Brexit news would in the past have triggered sizeable upside adjustments in Sterling, however gains in the current market environment are likely to prove tepid. Foreign exchange analysts are however unconvinced that the market is about to see a repeat of February-March given the substantial support offered to the economy and financial system by global central banks and governments. Indeed, the damage of the first wave of covid-19 to financial markets and its subsequent impact on exchange rates appears to have been derived from its shock factor.