GBP got off to a flying start to the week yesterday, as the pound gained over 1% against USD and over 0.9% against the euro, making it the strongest one day move since the beginning of April. This followed in line with traders continuing to enter into stock markets as the FTSE 100 rose, gaining nearly 0.5% this morning. The knock-on effect of traders moving to riskier assets means the USD ran out of steam with its safe-haven title. Couple this with the current unrest in America and growing trade war tensions with China again, the market is wary of holding USD.
All eyes will be turning to Brexit talks between the UK and Europe today, as the trade negotiations resume and head into the fourth round of talks, conducted over video conference. An article released by The Times today says the UK will be willing to make compromises to their demands, but David Frost and his team will be waiting for the EU to make theirs first. The article goes on to state how both Frost and Michel Barnier, the EU’s chief negotiator, are keen to dismiss the fact that talks are at a standstill and a No Deal Brexit is looking likely.
Time and time again, we have written about how fisheries and access to UK fishing waters is one of the biggest sticking points between the two sides, and from looking at the agenda, that is where the UK and Europe will kick off at 14:30 GMT. The talks will run until 17:00 GMT, where we have the potential to see some volatility as traders digest any information coming from the two.
Have a good day,
Author: Jack Nicholls, Relationship Manager
Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available online.