Good morning,

We saw an upbeat pound yesterday, with GBPUSD touching the 1.23 mark before correcting back down, whilst GBPEUR came in just short of 1.11.

The sentiment around Brexit negotiations continues to ease cautiously, with discussions around legislation to block a no-deal continuing. Meanwhile, Boris Johnson appears to be adopting a more pragmatic approach in the face of a more receptive EU. Negotiations will pick up in Brussels today, with the pound again resting on any output from this.

Over in the US, we saw a more significant inversion of the two and ten-year yield curve, with the spread being the lowest since 2007. The anticipation for a US recession trudges on but, until the data starts causing concern, the markets don’t seem to be pricing anything dramatic in.

Elsewhere the G10, we saw the Swedish Retail sales post an upbeat figure of 4.3%, surprising markets that were expecting a slowdown. The euro has struggled to keep a grip on the 1.11 level on the USD, with Italian Government coalition development still eroding the pair until an outcome is established.

Keep a close eye on Brexit discussion today, as there is minimal data to influence markets. Any Brexit announcements and developments are likely to take full ownership of the pound. Have a great day ahead.

Have a great day ahead. 

Author: Ross Hammond, Senior Corporate Account Manager