Risk currencies have opened the week on the back foot after a small cluster of COVID cases have been reported in Beijing over the weekend. Cases in the US have also spiked, with over 25,000 new cases reported on Saturday. Despite the United States being the worst affected country globally, investors flock to the US dollar for safety in times of nervousness.
With GBP now being seen as a risk-based currency, moving in line with stock markets where the FTSE 100 is down, this also means that the pound has taken a hit and started the week on a softer note. Today, Boris Johnson is set to meet with European Commission President, Ursula von der Leyen, and European Council President, Charles Michel, via video conference in an attempt to forge a path forward in the Brexit trade negotiations. Traders are sceptical that much will be agreed today, with both sides previously stating they are likeminded in the agreement that the talks need to intensify for a deal to be reached. Commencing Monday 29th June. there are already plans in place to run meetings between the UK and EU for five consecutive weeks.
Today in Europe, borders have reopened to neighbouring countries with plans being drawn up to kick start the travel industry and get the travel and tourism industry back up and running. With tourism being such a key industry within the Eurozone, leaders are keen to save the summer and rescue the economy.
Have a great day,
Author: Jack Nicholls, Relationship Manager
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