Will we see big swings on Thursday or a muted market?

12 October, 2020

Grace Smyth

Last week saw the Pound remain relatively stable making no big movements either way. However, we enter a new week with the Pound seemingly more upbeat against the Euro and Dollar. As we are now closing in on the 15th of October date set by the Prime Minister for the EU deal talks to have finalised, there’s no surprise we are now seeing various comments surrounding the talks. Having been fairly muted over the last week, this morning there seems to be an improvement in market sentiment, with reports suggesting that leaders are working hard to get a “deal over the line” despite differences remaining on some important issues like state aid and fishing rights. Two areas where either side have previously said they won’t budge.

EU chief negotiator Michel Barnier has since been reported saying he expects the 31st of October to be a more realistic date for an agreement to be reached, although Boris Johnson has previously said he is ready to cut ties on the 15th should an agreement not be reached. A bit contradicting from both sides. For those with upcoming currency requirements – watch this space. The 15th could bring some volatility to exchange rates or it could be a flat day should the 31st become the new ‘final’ date. Don’t leave yourself vulnerable to adverse effects on the exchange rates and talk to our consultants here at CI to discuss the options we can provide to help you manage your requirements ahead of Thursday.

The UK is also due to hear the government’s new three-tier system on local lockdown rules to help manage the Increasing spread of COVID 19, and investors will be listening closely and making predictions on what this could mean for the UK economy. What this will mean for the already dwindling economy cant be good and with more uncertainty ahead the remainder of the year isn’t likely to be a great one for the Pound.

The week ahead:
12:00 EUR ECB President Lagarde Speech
17:00 GBP BoE’s Governor Bailey Speech

07:00 GBP Claimant Count, Unemployment Rate and Average Earnings
13:30 USD Consumer Price Index

09:00 EUR ECB President Lagarde Speech

01:00 EUR European Council Meeting
01:30 AUD Employment Change and Unemployment Rate
13:30 USD Jobless Claims and Manufacturing Survey
16:25 GBP Autumn Forecast Survey

01:00 EUR European Council Meeting
02:00 USD Presidential Debate
10:00 EUR Consumer Price Index
13:30 USD Retail Sales
15:00 USD Consumer Sentiment Index

If you have a currency requirement coming up, call us today to speak to one of the team. We just might have the right tool to help you lock in your currency using our forward contacts or limit and stop-loss orders to help you mitigate your risk and reduce the cost of your currency transfers.