Over the course of yesterday’s trading session, the euro pushed higher against most of its contemporaries, as international markets responded well to the 100bn EUR auction of bonds aimed to providing funds for EU countries to tackle unemployment across the bloc. Unlike in the UK, where Moody’s rating agency cut Britain’s credit rating only last week, the EU still holds its vital AAA bond rating, meaning they hold considerable appeal to investors even at a low yield – especially in times of economic uncertainty.
In the UK, the main news dominating the headlines has been more about the standoff between the government and the City of Manchester with regards to its new Covid restrictions – although the news hasn’t had a knock on impact to the pound as of yet. However, the news this morning that UK scientists inside the Government have “deep doubts” that the tiered restrictions will work for much longer, with the far more economically damaging ‘circuit-breaker’ lockdowns being the next probable course of action. With regards to Brexit, sterling is still, as always, holding its breath on headlines – any news is likely to cause quick reactions in the sterling price as they come.
Have a great day.
Author: Joshua Haden-Jones, Senior Relationship Manager
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