The pound had a relatively good week, at least until Friday, as the UK returned to the Brexit negotiating table and resisted a coronavirus “circuit-breaker” national lockdown.
This will be a thin week for financial data in the UK, while no great stride is expected in Brexit trade talks. We are in a three-week run of UK-EU negotiations and as we have all been assured over the past few years, no agreement is ever made with the EU until the last possible moment.
The Covid pandemic is the other potential market influence this week, not just in the UK but in every major country. With cases rising in just about every large economy including across the North Atlantic, it is hard to see any one currency gaining advantage, but it is a factor to watch nonetheless.
On the GBP/USD front, the US election is the intriguing factor. Given the unexpected result in 2016, no-one is willing to trust the Biden-supporting polls 100% as we enter the last full week of campaigning. The other question is whether a Joe Biden Presidency would support GBP, which cannot be guaranteed.
You can read our analysis in the brand-new Quarterly Forecast. Read it here.
In the meantime, why not call your trader on 020 8108 5337 to secure today’s rate.
