The pound ended last week in a strong position against the dollar and weaker against the euro. Riskier currencies, which include the pound, strengthened as Biden increased his lead in the US election.
However, Brexit uncertainties weighed on the pound against the euro. Negotiations are due to resume in London today and key sticking points still remain. It’s hoped that a deal can be reached by the EU summit on 19 November. Senior EU official, Thierry Breton, said there was a “50/50” chance of a trade deal.
There is plenty of scope for smaller GBP movements this week, beginning today with a speech from Bank of England Governor Andrew Bailey ay 10.35 and one from BoE chief economist Andy Haldane in the afternoon, offering clues on future interest rates.
Jobs figures will be released GDP figures for the UK will be released tomorrow, and GDP on Thursday. This will reveal the health of the economy on a monthly, quarterly and yearly basis, although being for the period before the new lockdown they will be of limited use. Industrial production and manufacturing production figures will also come out for September.
