It appears the UK has kicked off the new week with Sterling following the same rhetoric from last week. GBP is down across the board, with the key 1.29 GBPUSD level broken in the last hour of UK trading on Friday. There has not been much positivity over the weekend to pick that back up, as we opened around similar levels in Asian trading hours at around 10 PM.
All eyes are back on the trade negotiations between the UK and Europe; with the limelight falling on the fishing rights for European members, with reports released stating that EU coastal nations are seemingly pressing the negotiators to stand firm on reciprocal access for members during the transitional period – something that the UK Parliament is firmly pressing back on. Reports go on to state that the vast differences could even lead to a break down in talks for the trade deal in the first half of the year, meaning Britain could be heading for the much-feared No Deal Brexit once again.
The coronavirus outbreak appears to be spreading, with a fourth case reported in the UK over the weekend. This is also giving the USD strength as a haven currency, whilst investors look to weather the storm and for more confidence to return to global markets. There are no notable data releases today, with the bulk of the releases coming later this week.
Have a great day.
Jack Nicholls, Relationship Manager