Daily market commentary: Sterling recovers versus the greenback in early Monday trading

The pound lost almost 3.5% versus the US dollar last week, as the markets priced-in the increasing likelihood of there being no trade deal with the EU in place at the end of the current post-Brexit transition period, following the UK’s government apparent intention to break the terms of the withdrawal agreement.

Nevertheless, sterling recovered more than 0.5% versus the greenback in early Monday trading, as some large investors see the current level as attractively priced and appear to dismiss the noise coming from Westminster as a negotiating bluff.