Good morning,
The pound has fallen from the highs seen last week and currently falling towards the 1.18 mark against the euro. Also falling against the dollar, traders find themselves in a precarious position heading into the new week.
The single currency has started to claw back some ground after the pound breakaway, GDP data released from the Eurozone on Friday morning resulted in better than predicted helped to turn the tide away from the yearly highs. In what seems to be a common theme of late, there is very little data out at the start of the week to force a move in markets.
World leaders will be speaking throughout the day at COP26, the climate summit being held in Glasgow, following the G20 summit in Rome over the weekend. Addressing concerns and planning next steps on how to tackle climate change as a collective, they will be meeting face to face to thrash out ways to reduce deforestation, reduce the use of fossil fuels and ultimately reduce the rising temperature of the globe. The two-week summit should see world leaders and activists make pledges to bring about change for the future. Economic changes could be brought about by any shift in policy resulting from the summit and in turn that can have a knock-on impact to currency markets.
Have a great day.
Author: Jack Nicholls, Senior Relationship Manager.
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