On the data front, today will be a light day with no noteworthy releases to kick off the new week. Instead exchange rates will be guided by a host of speeches by members of central banks. The highlights of which will be the European Central Bank’s President, Christine Lagarde, speaking at midday. She is expected to announce a willingness to support the economy with extra stimulus if needed. This could see movement in GBP/EUR, which has already opened above the 1.10 mark.
Prime Minster Boris Johnson will chair an emergency meeting today. As Covid cases continue to rise, further measures are due to be introduced to slow down the rate at which the virus is passed on. It is expected for a new tiered system to be introduced, however many are saying that this just adds to further confusion. With the threat of another lockdown on the horizon, it will be a fine balancing act to ensure the health of the economy remains afloat.
Thursday the 15th this week marks the start of the European Council meeting. A date highlighted in the diary by Boris Johnson as to wanting to have the Brexit negotiations complete. Whilst there is still no official confirmation that the two sides have come to an agreement, it is expected for the summit to push the negotiation teams in the right direction to conclude. Europe’s chief negotiator has said that a month end deadline is realistic.
Have a great day.
Author: Jack Nicholls, Relationship Manager
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