10/09/2020

Sterling falls to six-week low


GBP

Sterling reached a six-week low yesterday before a slight recovery in the afternoon session as Britain unveiled draft legislation for post-Brexit life, increasing concerns that trade talks with the European Union could be derailed.

The legislation – named the Internal Market Bill – acknowledged it had inconsistencies with international law and prompted a negative response from the EU and their leaders. It also raised the possibility of Britain exiting the EU single market in four months with no replacement trade agreement in place.

This comes as EU chief negotiator Michel Barnier arrived in London for the fresh round of talks, with some rumours circulating that Prime Minister Boris Johnson might be trying to goad the bloc into storming out of negotiations. But after EU representatives stated the bloc would not seek a suspension of talks, the pound recovered some its lost ground.

EUR

The euro held onto its gains against the dollar yesterday as the market braces for a European Central Bank meeting to gauge policymakers’ views on the common currency’s recent appreciation and its impact on inflation. While investors expect the ECB to keep policy steady, investors will closely watch President Christine Lagarde’s comments on how the euro’s rise to a two-year high this month affects the outlook for inflation and economic growth.

Key announcements

11:45 – ECB interest rate decision
12:30 – ECB policy statement and press conference


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