The pound was boosted last week when Jean-Claude Juncker the EU president said he didn’t have an “erotic relationship” with the Irish backstop and that a deal could be found. Really, he is the gift that keeps on giving. If finding a deal is about personal chemistry and opponents ‘mirroring’ each other, you can see that Juncker and Johnston will get along better than Juncker and Theresa May.
The pound has been rising against the euro for six weeks now, and is at a critical state where it decides whether to break out and head up or stays trading around this range. It all depends on Brexit, obviously, and in particular the Supreme Court decision on proroguing Parliament. However, there is plenty of economic news and data that will have an effect too, in particular the German and Eurozone purchasing managers’ index (PMI). Some of that data is already out this morning and has pushed the euro weaker.
So it will be an intriguing week. If you value certainty over intrigue, why not call your trader today on 020 7898 0541 to lock in today’s rate with a forward contract – still at an extremely good rate compared to the summer.
