The pound is strong against the euro and the dollar this morning as Brexit talks continue this week. Hopes for a deal remain, despite the missed deadline last week. EU leaders are reportedly discussing a process where a deal could be agreed last minute without the need for ratification from all member states.
Sterling’s strength this morning could also be down to the UK’s trade agreement with Canada. The two nations have agreed to continue to trade on EU term, which paves the way for negotiations to begin next year.
Chancellor Rishi Sunak will deliver his budget spending review on Wednesday, which will mainly be focussed on supporting the economy through the pandemic. This will follow the Prime Minister’s announcement today, which is expected to outline a tougher three-tier system after England’s lockdown ends on December 2.
PMI data will be released for the UK today, which is predicted to show that the service sector has fallen into contraction territory.
It has been announced this morning that the AstraZeneca/Oxford University vaccine is 70% effective, which has been seen as a triumph. Although its rivals have shown to be 90% and 95% effective, this vaccine is cheaper and easier to distribute meaning that it will have a vital role to play in the global fight against COVID-19.
