The pound remained buoyant against a host of currencies through Tuesday and into Wednesday morning. Closing the day above the 1.32 handle against the US dollar is a significant step, and one which has only been achieved on a handful of occasions this year. Eyes have turned back to the Brexit clock as it is being reported that a new trade deal with Europe is edging closer, with the time ticking down to the end of the year when Britain formally leaves the Union. With now just 43 days remaining on that clock, The Telegraph have reported that “landing zones for an agreement are in sight”. The report goes on to claim that the French President, Emmanuel Macron, has accepted that the French fishing quota will be lower after the transition period ends and the European community will look to redistribute their quotas to aid those that rely on the UK fishing waters.
Inflation data from the UK also gave sterling the boost this morning, as figures came in better than expected for October. The BBC are putting the increase down to clothing, second hand cars and computer games. As more people look to avoid public transport, car sales increased, which could then drop next year should a vaccine become readily available. Also, with more of the population staying at home due to seasonal weather and the second lockdown on the horizon, at the time, computer game sales increased.
The markets will now move their attention to the EU leaders summit tomorrow, for more hints as to if and when a Brexit agreement will be reached.
Have a great day.
Author: Jack Nicholls, Relationship Manager
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