UK's dangling the Brexit deal over investors’ heads

The United Kingdom seems to have been dangling the Brexit deal over investors’ heads, and it’s working. Brexit talks resumed on Thursday after negotiations halted last week, boosting the sterling against most of its riskier counterparts like the loonie. The pair’s 50-day moving average just crossed its 200-day moving average and touched the current levels, indicating that the pair could soon test its current trend. However, risk aversion is likely to prevail, despite the uncertainties around the approval for Brexit by the end of the year. The Canadian economy hasn’t been doing well as of late, too – economists claim that the country will suffer greater than initially expected as the second wave increased the chances of severe health and economic crisis. After it managed to recover quicker and more effectively during the first three quarters of the year, polls claim that its economy could slow to about 5.0% and 5.2% in Q4 2020 and Q1 2021, respectively.