30/06/2020

Brexit risk weighs on sterling


GBP

Sterling continued to trade at recent lows as Brexit worry continues to force pressure on the currency. The pound dropped to three month lows against the Euro and a one month low against the US Dollar, as a worse than anticipated Brexit deal became more likely over the weekend along with further worry that the UK economy will not pick up as quickly as many of its European rivals.

Despite UK coronavirus cases showing a steady drop, early data suggest other European countries are starting to show quicker signs of recovery, coupled with rising cases in the US, Sterling is not looking like a good bet for currency investors that are looking for either safety or growth.

EUR

The single currency continued to edge stronger as the eurozone’s consumer and business sentiment picked up in June to add confidence of an economic recovery in the single market.

Europe for the most part also seems to have the virus under more control than some of the world’s other leading economies and currencies – the US being the main comparison adding confidence to investors looking at the Euro at the moment. Brexit talks are still an ongoing issue and the markets are still very sensitive to any updates or lack of it.

Key announcements

07.00 – UK – GDP – Q1 data
10.00 – EU – CPI


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