The UK has released its trade talk mandate, with Michael Gove telling Parliament that the Government could walk away from negotiations in June if there is not a broad outline of a deal by then. Likewise, continued uncertainty over the line Rishi Sunak will take between loosening spending controls and keeping to the commitment to balance the budget by 2022 concern investors who look for certainty.
On the back of this, euro hit a month’s high against the pound, boosted too by better-than-expected economic data.
The dollar, on the other hand, weakened yesterday on growing expectations of a rate cut from the Federal Reserve. Today we’ll see a series of data releases, which will help to paint a picture of the American economy.
There is so much uncertainty on the horizon that it is completely unpredictable how long the euro’s strength will last, or what is next for the markets. Gain certainty over your transfers by locking in a fixed exchange rate with a forward contract – call your Personal Trader on 020 7898 0541 for more info.
