* Graphic: Global FX rates in 2020 tmsnrt.rs/2egbfVh
* Graphic: Sterling with trade pressure from Brexit vote tmsnrt.rs/2hwV9Hv
LONDON, January 14 (Reuters) – Sterling rose on Thursday when it was expected to return for negative interest rates from the Bank of England and hopes Britain’s economic recovery will accelerate as it has been ahead in vaccines across Europe strengthen the currency.
The pound has gained against the dollar and euro, 1% and 1.5% respectively this week after Bank of England Governor Andrew Bailey threw a dampener on market expectations for sub-zero levels in Britain.
Market prices for negative interest rates from the central bank were pushed back in nearly a month, with negative rates now expected in June 2021, compared to May 2021 earlier.
Prior to 0904 GMT, sterling was 0.1% higher to the dollar at $ 1.3657, not far from the $ 1.3701 hit earlier in the week.
ING said the Bank of England’s negative rates expected rebounds have moved down the euro-sterling movement and the pair may re-test the 89-penny support today.
Sterling was 0.2% higher against the euro at 89.025 pence, off the highest levels against the single currency – 88.84 pence – since December 24.
“We believe there is a good case for a stronger pound with the UK leading the European vaccine race, our prediction that the Bank of England will not join the negative interest rate club and when the difficulties of change come near term at the borders to the new. The EU-UK relationship is over, ”said Kristoffer Kjær Lomholt, chief analyst, FX and rate strategy at Danske Bank.
With the uncertainty surrounding the Brexit deal now largely gone, analysts are increasingly focusing on the British economy and its prospects.
Cases of COVID-19 infection have continued to rise in Britain, prompting the replacement of recurrent locks.
A rise in the British housing market has begun to slow down, eased by the new locks and when the temporary consumer tax cut comes to an end, a study showed on Thursday.
The Royal Institution of Chartered Surveyors ’monthly volume of new buyer searches fell in December to a seven-month high of + 15% from + 26% in November.
Reciting with Ritvik Carvalho; edited by Larry King