Recently, the pound has been moving in tandem with the stock markets. As a result of this, it is slightly softer this morning against the euro and the dollar. However, at the beginning of this week sterling was boosted by talk of Brexit negotiations ‘intensifying’ in July.
In keeping with the ‘new normal’, Boris Johnson and EU officials spoke by video call. Despite no real breakthroughs, both sides agreed to bring a ‘new momentum’ to finding a trade deal and the PM reiterated that there will be no transition period extension. This may come back to bite sterling in the near future.
Just as Brexit talks have (hopefully) been given a new lease of life, so has the high street, with non-essential businesses opening their doors this week. Although the queues outside Primark and crowds at Bicester Village won’t appeal to some, there’s no denying that it’ll help to get the UK economy up and running again.
The release of the Bank of England’s latest meeting minutes tomorrow will certainly paint a broad picture of how the economy is faring at the moment and what we can expect from the future. Although businesses are opening, Governor Andrew Bailey said recently that “we’re still in the midst of this.” The Bank may even release more stimulus measures, which could have an impact on sterling.
We might not be out of the woods yet, but it’s certainly encouraging to see businesses coming to life. This also means that the overseas property market is finally starting up again. All the countries that we deal with have seen a significant drop in infection rates and in some places, life has almost returned to normal. We’re just waiting on news of the highly anticipated ‘air bridges’ before viewing trips can get underway.
If you’re thinking about re-starting your plans, why not speak to your trader on 020 8108 5337.
You can also lock in today’s rate before the next round of Brexit talks begins with a forward contract.
