There was little movement in GBP/EUR yesterday as data and news was thin on the ground, although GBP/USD swung down and then up by roughly 0.5% over the past 24 hours.
Things could liven later in the week with more from Trump and central bankers at the Jackson Hole symposium.
The Republican National Convention (RNC) confirmed Donald Trump as candidate for president, and Trump warned that the election could be “stolen” by voter fraud.
In the UK the government insisted that schools would return in September, although there are concerns that the R rate for Coronavirus infections is heading over 1 again.
In economics, the talk is now of a K-shaped recovery for the British (and global) economy, with industries like tech, home delivery, folding bicycles… and other lockdown-friendly businesses thriving while others fail.
Tesco is taking on 16,000 more jobs, especially in delivery, while Virgin Atlantic is asking for a refinancing package at the courts today, hoping that creditors will accept a 20% “haircut” and delays to repayments.
That could all reverse if an effective vaccine is found, and President Trump has said he could fast-track the testing of a vaccine being developed by AstraZeneca and Oxford University.
There are insider reports today of real pessimism in the EU camp that the UK negotiators are moving into “blame game rather than end game” in Brexit talks, preparing for no deal.
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