15/06/2020

Sterling falls as Brexit related risk weighs on the pound


GBP

Sterling starts the week under pressure as increased risk on sentiment has crept back into currency markets.

Boris Johnson will today hold a video conference with the European Commission President Von Der Leyen and other EU council leaders, with Johnson expected to say he wants Brexit talks concluded by Autumn at the very latest. There is not much market optimism that there will be a breakthrough of any kind today.

With key Brexit meetings coming up and a very poor GDP showing at the end of last week, GBP has started the week on the back foot.

USD

The US Dollar continued its recovery to start the week, moving higher as US stock market futures tumbled.

Market sentiment has dropped recently, likely to be a mixture of the Federal Reserve’s lack of optimism on Wednesday, a spike in coronavirus cases with a potential second wave, and the continued dramatic rise in unemployment claims. However there is still investor appetite for the US Dollar in current conditions.

Key announcements

None


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