Sterling had a mixed day on Monday, initially weakening and then recovering later in the day. This comes despite sentiment towards the pound improving as some investors had renewed hopes that Britain and the European Union would be able to make progress in its Brexit talks.
This followed on from last week where some investors had cut positions against the pound as they believed there is a chance that Britain will avoid a no-deal exit. Renewed hopes centred around the announcements that Boris Johnson will meet both French President Emmanuel Macron and German Chancellor Angela Merkel this week ahead of the G7 summit.
Opposition Leader Jeremy Corbyn also held a keynote speech yesterday, where he announced plans to call for a general election. In his words, Corbyn stated that this was a “once-in-a-generation chance for a real change of direction”. Corbyn signalled his belief that a general election would stop a no-deal Brexit and vowed that he would do everything necessary to stop a hard exit.