With news of more local lockdowns, rules on quarantining for anyone arriving from Spain and fears of a second wave, it could be said that things are looking very uncertain for sterling.
Despite this, the pound had a good week last week and is looking strong against both the euro and the dollar this morning. This has mainly been driven by dollar and euro movements. However, news that a timetable has been released for the next rounds of Brexit negotiations has perhaps provided some support for sterling.
The next series of negotiations is due to finish in Brussels at the beginning of October. Will we have a trade deal by then? Who knows! But any suggestion of a ‘hard Brexit’ or a ‘no deal’ scenario could have an impact on sterling. (It really is impossible to predict what lies ahead, but do see what other financial institutions are forecasting for the quarter and year in our newly published Quarterly Forecast.)
This week, the Bank of England release the minutes from their latest meeting. It’s thought that they won’t cut interest rates. However, the markets will be looking out for any comments from officials over how the economy is faring currently and any thoughts about how it will recover, or not, over the next few months.
Speaking of the economy, you may be itching to take advantage of the Chancellor’s ‘Eat Out to Help Out’ scheme, which starts today.
As usual, there’s plenty of uncertainty on the horizon for sterling. So, to ensure that your money is protected with a forward contract, why not take advantage of today’s rate and call your trader on 020 8108 5337.
