The pound is, once again, moving in tandem with the stock markets, which fell overnight due to fears of a second coronavirus wave. However, sterling is slightly stronger against the euro and dollar this morning. Talk of a renewed shut down in the US due to an increase in infections has created negative market sentiment.
Despite performing well at the beginning of the day due to positive economic data, the pound weakened yesterday afternoon against both the euro and the dollar. This was due to Brexit news and fears of a second coronavirus wave.
EU’s chief negotiator said on Wednesday that agreeing on a Brexit trade deal by the end of this year was possible, but Britain needs to give clear signals it is ready to work towards one. Negotiations are due to continue in July, however, sticking points remain on both sides.
After Boris Johnson announced the easing of lockdown restrictions at the beginning of the week, top medics signed an open letter on Wednesday in the well-regarded British Medical Journal warning of the risk of a second wave.
