BoE's Bailey: Seeing upside for sterling if UK agrees trade deal with EU

While testifying before the Treasury Select Committee on Monday, Bank of England (BoE) Governor Andrew Bailey said that they see an upside for the British pound if the UK reaches a trade deal with the EU.

Additional takeaways

"Some evidence that vaccine news has boosted financial market confidence and business expectations."

"Vaccine news feels like first light at the end of the tunnel in several months."

"Vaccines give grounds for optimism, we will follow this very carefully."

"We hope the vaccine will help offset excessive pessimism."

"The latest PMI data paint a positive picture that excess gloom is lifting."

Market reaction

The GBP/USD largely ignored these comments and continue to push lower. As of writing, the pair was down 0.09% on the day at 1.3270.