Good morning,

This morning the market has opened with the general mood that risk is off the table, with a negative outlook heading into the coming weeks. Brexit fears continue to bubble under the surface and an alarming increase in Covid cases have investors returning to safety assets. One of those safety assets, the Japanese Yen, is currently sitting at near 2 monthly highs against the British pound.

Following Europe Commission President, Ursula Von der Leyen, speaking with the Financial Times last week to say that she was “convinced” a deal can be agreed between the EU and the UK, sterling made attractive gains. However, following those comments it has been relatively quiet on the Brexit front. The Guardian are reporting the team working on the Brexit negotiations now believe the EU has a wake-up call to the reality of a No Deal Brexit after the announcement of the Internal Market bill.

This week is being touted as pivotal for the UK, as Covid cases continue to rise heading into Winter. With already tighter measures introduced in the North East of England last week, many are reporting that the remainder of the UK could follow suit. The Health Secretary, Matt Hancock, said yesterday that the virus is doubling hospital admissions roughly ever eight days, meaning an increase in fatalities could be a less than a few weeks away. Therefore a ‘mini lockdown’ of 2 weeks could be put in place to stem the new, worrying trend.

Throughout the week, members of the Federal Reserve will be making speeches. The highlight being Fed Chair, Jerome Powell, testifying before a Congressional committee for recent central bank policy.

Have a great 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 here.