AVN 70.30 Increased By ▲ 5.66 (8.76%)
BOP 10.04 Increased By ▲ 0.19 (1.93%)
CHCC 121.45 Increased By ▲ 0.93 (0.77%)
DCL 10.30 Increased By ▲ 0.20 (1.98%)
DGKC 106.60 Increased By ▲ 3.45 (3.34%)
EFERT 61.40 Increased By ▲ 0.30 (0.49%)
EPCL 41.15 Decreased By ▼ -0.05 (-0.12%)
FCCL 20.10 Increased By ▲ 0.19 (0.95%)
FFL 16.76 Increased By ▲ 0.85 (5.34%)
HASCOL 21.15 Increased By ▲ 0.61 (2.97%)
HBL 130.89 Increased By ▲ 4.44 (3.51%)
HUBC 79.45 Decreased By ▼ -0.09 (-0.11%)
HUMNL 7.80 Increased By ▲ 0.20 (2.63%)
JSCL 27.18 Increased By ▲ 0.48 (1.8%)
KAPCO 26.94 Increased By ▲ 0.44 (1.66%)
KEL 4.24 Increased By ▲ 0.04 (0.95%)
LOTCHEM 12.12 Increased By ▲ 0.07 (0.58%)
MLCF 37.22 Increased By ▲ 1.12 (3.1%)
OGDC 105.38 Increased By ▲ 0.38 (0.36%)
PAEL 34.59 Increased By ▲ 0.69 (2.04%)
PIBTL 12.79 Increased By ▲ 0.41 (3.31%)
PIOC 93.52 Increased By ▲ 4.12 (4.61%)
POWER 9.11 Increased By ▲ 0.31 (3.52%)
PPL 93.51 Increased By ▲ 1.65 (1.8%)
PSO 205.41 Increased By ▲ 7.95 (4.03%)
SNGP 62.60 Increased By ▲ 1.40 (2.29%)
STPL 13.39 Increased By ▲ 0.21 (1.59%)
TRG 54.75 Increased By ▲ 0.96 (1.78%)
UNITY 17.35 Decreased By ▼ -0.04 (-0.23%)
WTL 1.18 Increased By ▲ 0.06 (5.36%)
BR100 4,199 Decreased By ▼ -88.39 (-2.06%)
BR30 21,216 Decreased By ▼ -521.67 (-2.4%)
KSE100 40,571 Decreased By ▼ -632.88 (-1.54%)
KSE30 17,205 Decreased By ▼ -264.83 (-1.52%)
COVID-19 TOTAL DAILY
CASES 312,263 747
DEATHS 6,479 5

LONDON: The pound rose against the euro and a broadly weaker US dollar on Monday, boosted by improved risk appetite in global markets, while investors waited for UK lawmakers to vote on a bill which the European Union has told London to scrap.

Sterling had its worst week in six months last week, as investors grew more pessimistic about the chances of a Brexit deal being reached before the December 2020 deadline.

Britain threw Brexit trade talks into disarray last week by proposing legislation that would break international law by breaching parts of the Withdrawal Agreement which was signed in January.

Lawmakers are due to debate and vote on the proposed bill, called the Internal Markets Bill, today.

The EU says it cannot trust those who break agreements and that if the bill is not effectively scrapped there will be no trade deal to cover Britain when it leaves the customs union and single market at the end of 2020.

"If the bill succeeds it ups the ante on a no-deal to 50:50," said Neil Jones, head of FX Sales at Mizuho.

"It would certainly set off alarm bells - there'd be a lot of sell signals," he said.

Before the vote, the pound rose, as global risk appetite got a boost from coronavirus vaccine hopes as AstraZeneca resumed clinical trials.

At 1423 GMT, the pound was at $1.2897, up 0.8% on the day but still close to 7-week lows.

Versus the euro, it was up around 0.5%, at 92.09 pence per euro.

One-month implied volatility hit new five-month highs, indicating increased expectations of future price swings.

Sterling-dollar overnight implied volatility also rose to its highest since early April.

"We expect the pressure on GBP to continue building this week as not enough risk premia is priced into the currency relative to the urgency of the situation," ING strategists wrote in a note to clients, saying they expect cable to head towards $1.25 this week.

But Goldman Sachs said that the chances of a damaging no-deal Brexit are "meaningfully lower" than the market is implying, making sterling attractive for investors who are willing to look through the short-term volatility.

The European Commission will delay making a decision on the City of London's euro clearing, a derivatives industry source said.

Elsewhere, tighter restrictions on social gatherings in England came into effect on Monday, after coronavirus infections in the UK rose to around 3000 per day.