The pound remained strong against both the euro and the dollar at the end of last week, as positive rhetoric surrounding Brexit continued. However, this morning the pound has dropped lower due to pessimistic talk over the weekend. Brexit Secretary Stephen Barclay and the EU’s Chief negotiator, Michel Barnier said that their talks had been “constructive”, and agreed to intensify negotiations going forward. Prime Minister Boris Johnson said that there is still a “way to go” before a deal can be reached.
This week, the EU summit will take place on Thursday and Friday. It’s widely expected that a decision on whether or not a deal can be reached will be made at this summit. Parliament will then meet this Saturday to plan their next steps. Negotiating teams will re-convene today as efforts to reach a deal continue.
Brexit is likely to dominate the pound this week, however, there are some economic data releases coming up. Inflation rate figures will come out on Wednesday and retail sales on Thursday.
