It has been a flat and uneventful start to the week, with sterling pairs opening the new week on a softer tone. What could have been a key risk event with Prime Minister Boris Johnson meeting with President of the European Commission, Ursula von der Leyen, the take away was that talks for a trade agreement will be further intensified. A rhetoric which has been spoken of on a few occasions over the last few months. However, no significant news seems to be good news and is keeping the pound afloat of the 1.10 mark against the euro and 1.29 against the dollar at the time of writing. With the further intensified talks, Europe’s head of negotiations, Michel Barnier, will travel to London for the second half of the week. Fisheries, governance, and the level playing field and are the key areas with remain a sticking point, something which traders believe will be agreed upon come the negotiation deadline.
The US dollar has been holding a range bound pattern since the sell off Friday, after President Donald Trump was admitted to hospital after testing positive for Covid. Despite the president greeting supporters and well wishers outside the hospital in a motorcade on Sunday, there are still questions as to his health. The medical team for the president has said that his condition is improving and they are hopeful of a release from hospital on Monday. After underwhelming jobs data released Friday, USD will need some positive news to break the current trend.
European sales data is released at 10:00am BST and PMI data released from the States at 15:00pm BST, there could be some significant movements should the results come in away from expectations.
Have a great day.
Author: Jack Nicholls, Relationship Manager
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