Good morning,

Figures released this morning have revealed that the UK economy continued to grow throughout August, but not quite at the rate that analysts were expecting. Even with the Eat Out to Help Out scheme running throughout the month, the release was not enough to give GBP a boost heading into the final trading day of the week. Following the coronavirus outbreak, which shut down the country, June and July saw the economy bounce back to life as restrictions were eased. That now marks 4 consecutive months of growth for the UK. Doubts are starting to creep back into the economy however, with further restrictions in place, with the potential for another lockdown, and the end of the furlough scheme meaning the road to recovery to pre-Covid levels could be slow and drawn out. Day by day, we are also creeping ever closer to the deadline for Brexit. With no formal agreement announced, GBP will continue to be limited in upside movements off of its own accord.

Only a matter of days after US President, Donald Trump, took to Twitter to announce the stimulus package would not be negotiated until after the election, it is being reported that the talks have been picked up again. Traders are banking on whoever wins the election will be willing to give the go ahead for a stimulus package, meaning riskier assets are once again being bought. The latest polls show that Joe Biden is currently leading the President. However, in the 2016 election, Hilary Clinton was leading the polls throughout the campaign process, before losing to now President Trump.

Have a great weekend. 

Author: Jack Nicholls, 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.

References

https://www.bbc.co.uk/news/business-54474490

https://uk.reuters.com/article/uk-global-forex/dollar-slips-and-yuan-soars-as-investors-eye-biden-presidency-idUKKBN26U013

https://www.theguardian.com/us-news/2020/oct/08/us-election-polls-tracker-swing-states-biden-trump