The pound has weakened against the euro but has strengthened against the dollar this morning. This comes as UK markets start to reopen after the Christmas break and news that the Oxford-AstraZeneca vaccine has been approved for use in the UK is announced. It is expected that the Brexit deal that was agreed on the 24 December will very soon be put into UK law, as parliament prepares to debate and vote later today.
Sterling is trading around this year’s high against the greenback, however, as there was no sharp rise, it is thought that markets had anticipated that a Brexit deal would be agreed.
The end of the Brexit transition period is looming, and the new EU rules will come into force provisionally on January 1 2021, with the European Parliament voting on it later.
As businesses adapt to the new rules, it is likely that the pound will remain under pressure. Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
