The pound remained strong against the euro and the dollar yesterday and is still strong this morning. Its recovery began when the incoming BoE Governor, Andrew Bailey, hinted that they won’t be rushing into a coronavirus related interest rate cut. Sterling was further supported by fairly positive UK-EU trade talk comments.
Michel Barnier, the EU’s Chief Brexit negotiator, said that trade talks started in a “very constructive” manner at a press conference yesterday. He added that “there are points of convergence and divergence, which is totally normal for the first round of negotiations.”
The second round of talks will take place in London later this month. There are many differences to iron out, including the EU wanting access to UK fishing waters and the UK wanting a Canada style trade deal.
