Home Daily Commentaries Sterling steady as trade talks continue

Sterling steady as trade talks continue

Daily Currency Update

GBP - British poundThe pound continues to hold its gains around the 1.30 handle versus the dollar and 1.10 against the euro as Brexit talks continue between the UK and the EU. UK Prime Minister Boris Johnson's threat to walk away from talks have not come to fruition and it appears French PM Emmanuel Macron's stance re: fishing rights may be softening, hopefully leading the way to a deal sometime next month. Away from Brexit, Covid-19 cases continue to rise in the UK as the second wave continues to take a grip. There were 151 confirmed deaths yesterday bringing the total to 44,886 as Britain continues to struggle with the re-emergence of the pandemic. Economic data is thin in the ground this week from the UK so expect Brexit chatter to dominate the news.

Key Movers

Away from the UK we get ever closer to the US general election due on Tuesday 2nd November. Most polls and bookies have Joe Biden as favourite to the top job with odds on him winning hovering round 1/2 with Trump as far out as 7/4. Crunch day is next Tuesday and the two candidates will be doing their hardest to try and convince voters of swing states such as Florida over the next 8 days.Trump will be praying that US Advanced GDP due on Wednesday shows a strong rebound as his policy of trying to keep the economy open has led to over 200k Covid-19 related deaths.EUR/USD is down a touch to the 1.18 handle and USD/JPY is at 104.85. GBP/USD is at 1.3040 and EUR/USD at 1.8010

Expected Ranges

  • GBP/USD: 1.2985 - 1.31 ▼
  • GBP/EUR: 1.10 - 1.11 ▲
  • GBP/AUD: 1.8240 - 1.8330 ▲
  • GBP/NZD: 1.9469 - 1.97 ▲
  • GBP/CAD: 1.71 - 1.7225 ▲