More selling pressure has been piled on the Pound this morning, dropping 1% against the EUR and 0.7% against the Dollar since the start of the European trading session this morning. Over the last week, we have seen the EUR price drop nearly 4% in total.
Yet again, the Coronavirus outbreak is dominating headlines on every news outlet. 13 new cases were reported yesterday, now taking the total number of cases to 36, while the first patient to contract the virus despite not being abroad is reported. Globally, we now have a reported figure of 90,000 confirmed cases which is predicted to increase, which will consequently have a knock-on effect to supply chains and global risk. As discussed in Friday’s update, this now brings back the possibility of an interest rate cut come the next meeting in March. We could continue to see sterling sell-off over the day, however, we have found some support at 1.1535.
After the wait since Parliament approved the UK’s departure from the EU at the end of January, trade negotiations are due to kick off in Brussels today. David Frost and his team of advisers will head over from London, with markets seeking direction of how the UK will formally leave Europe in December.
At 09:30 GMT, we have UK manufacturing data released, this should give an indication of February’s manufacturing conditions for businesses. The result is expected to hold steady, despite the current global outlook. The US will also release its figure at 15:00 GMT, which is expected to fare worse than the UK’s reading.
Have a good day,
Author: Jack Nicholls, Relationship Manager
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