The British pound has once again found itself opening the week on the back foot, recording six days of losses against the euro in the last eight trading days. At the time of writing, the pair is currently sat below the very key psychological level of 1.10 and the pound is sub 1.24 against the US dollar. This is compounding more misery on foreign currency buyers, with the path ahead seemingly very bearish for sterling.
This week the next round of Brexit negotiations are due to start, with the UK and Europe meeting once again in an attempt to come to an agreement on trade once the UK leaves the European Union at the end of the year. The negotiations are expected to run throughout July, meaning that the pound will once again be exposed to off-the-cuff comments made by the negotiation team, politicians and reporters.
Over the weekend it is reported that UK Prime Minister Boris Johnson once again confirmed the UK would be willing to leave the Eurozone on an Australian style agreement with the bloc. In other words, this is effectively a no-deal Brexit as it is made upon World Trade Organisation terms. This comment is what has sent sterling below the 1.10 mark mentioned previously.
Despite these comments, some analysts are still predicting a deal can be agreed between the two sides. As trade negotiations intensify, there is still hope that the two are willing to make exceptions on their demands and an agreement can be settled which is beneficial for both parties. From this, it is almost certain that it could be a volatile period for GBP and it would be beneficial to speak with your account manager to put a plan in place to cover your interests.
Have a great day,
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.