Today is void of any significant economic data which will leave the markets searching for headlines and ranges to determine short-term movements.
Notably gold and silver, commodities that have fared very well during recent months have been knocked off their podiums. Silver is down 9% on the day and gold has pulled back to a low of 1907$. This commodity sell-off is helping drive some much-needed Dollar strength with EURUSD and GBPUSD moving lower, albeit by a small percentage change. The overall trend and momentum on major USD pairs and the Dollar Index still paints a bleak picture.
GBPEUR still maintains a sideways path, trading closely to 1.10 with a couple of Brexit murmurs making a recent appearance. The UK government has commented that neither a breakdown nor breakthrough on major negotiation hurdles has been reached, meaning the conversation is very much at an impasse. Technically there are only a few weeks left for a Brexit deal to be arranged and laid out ahead of the next EU leaders summit set for October 15th. Delays have been such a common outcome during the negotiation phase that it really piles on the pressure for GBP pairs as the EU parliament ratification process takes place in December.
As media headlines swing from covering the impact of Covid-19 to bringing Brexit back into focus, it will be important to consider what your Sterling currency plans look like over the next 3 to 12 months. There are many different ways to manage incoming and outgoing currency payments, so please do reach out to the account management team to arrange a conversation.
Have a great week ahead.
Author: Alistair Hutson, Senior Relationship Manager
Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available here.