Sterling finished the day in a stronger position against the euro yesterday and is still strong this morning.
This could be partly due to talk of an extension to the Brexit transition period. The pandemic has, apparently, stalled the progress of trade talks, making it unlikely that the UK and EU will have the outline of a deal by June, which had been the original goal. There have been reports that officials tasked with working on the negotiations have now been drafted into coronavirus matters.
Despite this, a spokesperson for the Prime Minister said recently that the deadline is still “enshrined in law.”
Today, the Manufacturing PMI figure for March will be released for the UK, which is expected to drop into contraction territory.
Britain’s largest banks have agreed to scrap nearly £8 billion worth of dividends due to the coronavirus crisis, giving banks an additional cushion to weather an economic downturn.
