The Great British Pound shed some of its early gains on Monday, falling 0.3% to open at 1.3087 against the Greenback. The catalyst for the volatility in the currency was again found in the headlines with the Brexit negotiations continuing to have a profound effect on the currency.
The Sterling surpassed last weeks high early in the day, hitting 1.3132 before plunging to 1.3027 later. Initially, the optimism for the EU offering a strong free-trade agreement kept the Pound well supported. However, the lustre of the offer was quickly unwound as the Greenback strengthened and comments from PM May’s spokesman dampened the likelihood of a deal. Further diminishing market hopes was a report that UK Brexit Secretary Raab won’t be heading to Brussels this week ahead of the October EU summit next week. Overall, Brexit remains at a critical juncture with far-reaching impacts on financial markets.
Tuesday looks to be another quiet day on the economic calendar for the British Isles with little to drive momentum. Attention remain affixed to the on-going Brexit negotiations for direction.