The pound is choppy against the euro, as speculation continues over the current round of Brexit talks. Little progress is widely expected, but the markets will be watching closely for any hint of a change in position if Johnson and von der Leyen do meet later this month, as suggested. One of Michel Barnier’s advisors, Stefaan de Rynck, indicated yesterday evening that compromise would be difficult, saying, ‘As to our demands being unreasonable, these are our demands. No qualification the UK can put to them will change our demands. We need to find space for compromise loyal to mandate of EU – that’s the challenge that lies ahead of us’.
Composite and services PMI data came in better than expected yesterday, albeit at the second-lowest level since records began, but still recovering from April’s low, with hopes of the economy slowly recovering as lockdown eases.
