11/12/2020

Sterling Drops Ahead of Sunday


GBP

The pound took further losses against the US Dollar and the Euro yesterday, as currency markets became more cautious around the possibility of a no-deal Brexit.

Sterling has been volatile on Brexit headlines, dropping in response to news suggesting a deal is unlikely and rising when hopes are raised. Britain has once again told the EU that it should make significant concessions to break the deadlock by the end of the weekend, with members of the European Union side also requesting the same thing from the UK. Everybody is now focused on Sunday as a proposed deadline by which progress must be made.

Speaking for the first time since his meeting in Brussels with Ursula Von Der Leyen, the Prime Minister said now is the time for firms and people to prepare for a no deal outcome.

Talks continue between the two sides, but Boris Johnson said they were not yet there at all in securing a deal.

EUR

The euro strengthened yesterday after the European Central Bank went against market expectations of a larger stimulus boost, while sterling fell as the prospect of a no-deal Brexit appeared more likely.

The ECB expanded its debt purchase scheme and agreed to provide banks with even more ultra-cheap liquidity as long as they keep passing the cash onto companies. The ECB also said it is monitoring the euro’s exchange rate in regards to possible implications for the medium-term inflation outlook, after the Euro hit a two-and-a-half year high against the Dollar.

Events:

All Day: European Council Meeting


Why choose RationalFX?

Based in the heart of London’s financial district Canary Wharf, RationalFX has traded over $10billion in currencies across the globe. Take advantage of our competitive exchange rates, market expertise, suite of FX products and online payment platform when you make bank to bank transfers in over 50 currencies worldwide.

Whatever your reason for making overseas payments, we’re confident our currency specialists can save you time and money while providing peace of mind. Call our team now on: +44 20 7220 8181