The pound has strengthened against the euro and the dollar on news that the UK and EU have given the go-ahead for Brexit talks to continue. Although key issues remain, there have been reports of “genuine progress” over the weekend. Despite this, the Prime Minister says that ‘no-deal’ is still the most likely outcome.
The Bank of England and the Federal Reserve will hold their monetary policy meetings this week. Whilst interest rates are expected to be kept the same, it will be interesting to see what BoE officials say about the current Brexit uncertainty. Fed officials are likely to comment on the surge of COVID-19 cases in the US and stimulus news.
As Brexit talks continue, we could see volatility for the pound over the coming days and weeks. Take this opportunity to make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
