The pound hit a 21-month high of 1.167 against the euro yesterday as Prime Minister Theresa May made her first public admission that Brexit could be delayed – saying there would be an opportunity for a ‘short, limited extension to Article 50’ if her deal and the prospect of a no deal are both rejected.
The news buoyed the pound against both the euro and the dollar, hitting a three-month high against the latter.
It’s important to remember, however, that a delay to Brexit is, in the end, just a delay – it’s not the end of the road. Take advantage of the strength of the pound now by locking in the exchange rate for up to 12 months with a forward contract. Speak to your Personal Trader on 020 7898 0541 to find out more.
In the Eurozone, economic releases didn’t paint a particularly rosy picture, with the German GfK index hitting an almost-two-year row, having shown negative results every release for the last five months.
US consumer confidence index came in positive, jumping from 121.7 to 131.4. Fed Chair Jerome Powell reaffirmed his commitment to a pause in rate hikes, due to worries over ‘global economic and financial developments’.