He continued: “The UK economy, which suffered one of the worst contractions out of the developed nations due to its reliance on the services sector, is likely to benefit considerably if a vaccine is successful.
“Currently in the middle of its second lockdown, the UK economy is also at risk of a huge shock in the event of a no-trade deal Brexit at the end of the year.
“However, comments by the UK government and EU officials lately have been positive, feeding hopes for a deal before year-end and avoiding disruptive barriers to trade in 2021.
“Boris Johnson’s defeat in the House of Lords to have the Brexit treaty edited with the Internal Market Bill also raised the chances of a soft Brexit.”
Vessey added: “Should the risk rally continue and Brexit optimism persist, sterling should extend higher.