Volatile week it has been for sterling

2 October, 2020

Luke Dyson

What a volatile week it has been for sterling with GBP jumping multiple cents a day but only staying in its 3 cent range-bound market. The market still has no clear trend insight as Brexit negotiations draw closer to the deadline. we have seen some significant progress being made with the chances of a trade deal being struck nearly doubling following negotiators stating they are now entering the final stages of coming to an agreement called the tunnelling period. This is where the last details are confirmed in secret and a final draft for EU leaders is then assessed. However, there still does remain one major sticking point for an agreement to be finalized and this is fishing waters. For this to be agreed upon both the UK and EU need to jump into it together taking less than they initially bargained for.

Following this Brexit positivity this week it isn’t out of the woods just yet, with the EU now launching official legal proceedings against the UK over the internal market bill. This, however, has become less of an issue now with the EU accepting the UK’s statement saying we would only breach the withdrawal agreement if no trade deal was reached by Oct 15th.

We can expect to see more volatility in the coming days/weeks leading up to the trade agreement deadline following any updates that are made.

If you have any pending currency requirements please take advantage of the intra-day volatility and get your currency secured at the highs ahead of October 15th as we could see a massive jump in the exchange rate come this day.