The pound strengthened yesterday due the markets stabilising after coronavirus fears and a weak European economy. Sterling was initially given a lift against both the dollar and the euro, however, it is slightly weaker this morning.
Any further strength could depend on trade talk worries. EU ministers set out their negotiating mandate yesterday, which says that EU standards should serve as a ‘reference point’ in any trade deal. There have been reports that the EU’s negotiating mandate hasn’t been well received by the UK government, with sources saying that Downing Street ‘wholly rejects’ two components which make up the mandate.
The UK will release their mandate tomorrow ahead of negotiations, which begin on Monday.
