Sterling and euro are both benefitting from the weakness of the US dollar today, with the latter weakening on the prospect of monetary easing policies. The pound is showing an upward tick this morning against the euro, but it is still low due to pressure from worries over the Conservative leadership selection. Boris Johnson is still the firm favourite, and is still publicly favouring no-deal over an extension – although he did say yesterday that he didn’t ‘believe for a moment’ that it would come to pass.
The Federal Reserve’s suggestion that it might cut rates before the end of the year has caused the dollar to weaken, and a lack of optimism over the results of Donald Trump’s meeting with Xi Jinping later this week are also weighing on the markets.
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