It feels as though we’ve been hit by a barrage of news already this week! After a good start, the pound is weaker against the euro and dollar this morning. The euro has strengthened due to news that the EU finally managed to agree on a coronavirus recovery package, which will help struggling EU countries in the wake of the coronavirus crisis.
Promising coronavirus vaccine news supported sterling on Monday and Tuesday. The vaccine has, so far, been successful in clinical trials. There’s still a long way to go with this, but it’s encouraging nonetheless! Any more positive news surrounding this could be helpful for the pound.
You may have also seen that the Russian report was released yesterday. It cited that Russian influence in the UK is now the ‘new normal’ – with more awareness of this, it will be interesting to see if any news further down the line impacts currencies at all.
Data yesterday showed that the government borrowed a record £127.9bn between April and June this year, as tackling the coronavirus pandemic took its toll on the public finances. It’s thought that Chancellor, Rishi Sunak, will have to strike a balance between spending to aid economic recovery whilst reducing the deficit – not an easy task in the current circumstances.
Brexit talks continue in London this week, and any related news could impact the pound. Michel Barnier will hold a press conference tomorrow with the latest updates from an EU perspective. News of any developments, or lack of, could spell volatility for the pound.
With things slowly returning to normal, you may be looking to transfer money overseas again, perhaps to purchase a home abroad or for any regular payments.
So, as Brexit and the economy have the potential to cause volatility, why not lock in today’s rate? Speak to your trader about a forward contract on 020 8108 5337.
