The improvement in UK-EU relations drives the pound higher against the dollar.

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Jin10 data reported on May 20, Sucden Financial research head Daria Efanova commented that the rise of the pound against the dollar is attributed to the improvement of UK-EU relations. The UK and EU signed a protocol on Monday to promote trade and strengthen security cooperation. Additionally, she stated that technical analysis shows a strong position for GBP/USD, which will remain above the key MA. The recent outlook for GBP/USD seems positive, with the potential to further pump to 1.3400. However, market participants remain wary of the upcoming UK CPI data and its impact on expectations for Bank of England policy.

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