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The pound knocked by Brexit headlines

Daily Currency Update

GBP - British Pound

The pound continued to slip slightly on the back of Brexit headlines and lack of data to provide support. The EU’s key Brexit negotiator Maroš Šefčovič admitted his disappointment as the UK don’t intend on securing a solution by the end of the year. He said that he was hoping the UK and the EU could still make ‘decisive progress this week’ on the issue of medicines trade between Great Britain and Northern Ireland, which would ‘generate positive momentum’ for the rest of the talks.

Key Movers

The US dollar remains on top of its major peers again at the start of the week, as we see GBP/USD push lower towards the $1.3350 handle. This is shown by the fact that the USD Index, which shows the relative strength of the US dollar against a basket of foreign currencies, recently reached 16-month highs.

The euro has begun to feel the pressure as talk of a mass lockdown knocks investor confidence in Europe. Austria has already announced a lockdown and it is predicted that other nations could shortly follow. GBP/EUR pushes back up through the 1.19 handle on the back of a drop off in risk appetite.

Expected Ranges

  • GBP/USD: 1.3340 - 1.3450 ▲
  • GBP/EUR: 1.1860 - 1.1975 ▲
  • GBP/AUD: 1.8470 - 1.8565 ▲