Currency news this week
28 September, 2020
Maksim Tichonov
Unlike a few weeks ago, trade negotiations between the EU and UK are showing signs of small progress. The message given by the British press about the informal talks this week indicate a smaller chance of a no deal Brexit, due to some agreement regarding the Internal Market Bill (IMB). As we approach the 15th of October deadline, small signs of progress allowed the pound to closely parry with the euro, however, a 1.6% drop against the dollar gives a good reality check.
The pandemic had an effect on global economy and new regulations may further slow the recovery of the pound. New regulations may cause a loss in business and therefore a further loss in exchange of goods and services around the world, fortunately the UK is not the only country affected. With time, the way every government is dealing with the situation will inevitably cause a lot of volatility between all major currency pairings.
As we approach the cold months of the year, uncertain times paint a bleak picture. New COVID regulations and the 15th of October deadline appear to be the most critical factors for the economy, a no-deal Brexit may result in a substantial loss for the pound with a further reduction due to loss of business.
Eco stats for the week
Monday
ECB’s President Lagarde speech
Tokyo CPI ex Fresh Food
Tokyo Consumer Price Index
Tokyo CPI ex Food, Energy
Tuesday
EUR Consumer Confidence(Sep)
EUR Business Climate
Harmonized Index of Consumer Prices
Redbook Index (MoM)(Sep 25)
S&P/Case-Shiller Home Price Indices (YoY)(Jul) Fed’s Williams speech Consumer Confidence GBP BoE’s Governor Bailey speech Fed’s Clarida speech Fed’s Williams speech Fed’s Quarles speech Fed’s Quarles speech
Wednesday
Presidential Debate
Non-Manufacturing PMI(Sep)
NBS Manufacturing PMI(Sep)
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New Articles
- Brexit deal to be done, or going, going, gone? 25 November, 2020
- Sterling starts the week down from the highs of last week 16 November, 2020
- Votes are in – albeit still being counted, will Donald trump Joe? 4 November, 2020
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