Brexit talks continue

30 October, 2020

Rob Bastin

Thursday’s trading offered little in the way of new information for Sterling markets to go off, and continue to trade sideways against most major currencies. With rates at the top end of the trading range in recent days, yesterday saw losses across the board as traders refuse to commit to any over speculative positions whilst so much uncertainty lies around the corner. Brexit talks continue and therefore loose optimism remains that some kind of deal could be reached, keeping rates propped up around 3-4% higher than we were seeing back in September. This optimism is however being heavily balanced with the increasing threat of another national lockdown and the potential for another aggressive drop in financial markets.

If you have a currency requirement in the coming weeks then make sure you are in close contact with your consultant to make a plan that manages these unusually high risks for sudden volatility. Gambling in the current market conditions is a bigger risk than we have experienced in the past, and our experienced consultants can talk through a number of tools to help you manage the current situation.

In other data yesterday, the US posted a remarkable GDP quarterly figure of 33.1% growth in Q3, and set a new record recovering all of the 31.4% contraction seen in Q2 after the initial lockdowns. This saw the USD gain strength across the board and will be a huge boost to Trump’s campaign only 5 days away from polling day. Meanwhile, in Europe, the ECB kept rates at zero and the deposit rate at -0.5%, but did indicate that further stimulus could be ready to come in December’s meeting keeping pressure on the Euro.

Today is another quiet day of figures for the UK, with the main statistics coming from the Eurozone at 10:00 am with the latest Consumer Price Index and Gross Domestic Products figures for October.