In yet another volatile day of trading for the pound, prices spiked as the Government announced that the Brexit trade talks are due to resume as early as today in London. Setting out the rules that lay ahead for the UK and Europe, the statement said talks are going to intensify and even take place over the weekend. With there still being clear divides between the two, the UK reaffirmed its stance that if no common ground cannot be met, they are willing to leave the bloc with no deal and enter World Trade Organisation terms come 2021. With the resumption of trade talks offering a glimmering of hope for a deal, GBPEUR rose to near 1.11 and GBPUSD near to the 1.3180 mark.
In stark and alarming news however, the UK recorded 26,688 new Covid cases yesterday. In the steep rise compared to Tuesday’s figure of 21,331, it begs the question for if and when the Government will have to impose a ‘circuit-breaker’ lockdown. This has the potential to have a damning effect of the UK economy as businesses close once again, hitting already shaky economic output. As mentioned in yesterday’s blog, top scientists have “deep doubts” that the tiered restrictions will help bring the case figure down.
Despite this, Chancellor of the Exchequer Rishi Sunak will today outline measures for further support for workers in the hardest hit sectors. Critics of the soon to be released Job Support Scheme say the measures which are currently scheduled will not offer enough support to employees within tier 2 areas, who are not formally required to close but are seeing a large fall in demand.
Have a great day.
Author: Jack Nicholls, Relationship Manager
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