The pound will benefit from closer UK-EU relations.

Jin10 data reported on May 1st that Chris Turner, an analyst at ING, stated in a report that the British pound will benefit from the prospect of closer ties between the UK and the EU. The UK will sign a new security agreement with the EU at the first UK-EU summit held after Brexit on the 19th. Establishing closer relations with Europe may lead to a higher rating for the UK's economic growth outlook by the U.S. Congressional Budget Office in November. This will provide more spending room for UK Chancellor of the Exchequer Reeves. The euro against the pound is currently around 0.8500, and ING expects that if it effectively falls below 0.8500, it may reach 0.8430.