Markets tick over as Brexit negotiations set to restart
Friday 27 November, 2020
Daily Currency UpdateGBP - British PoundIt was a quiet day in the markets yesterday as Thanksgiving in the US led to subdued sessions elsewhere. GBPUSD continued to test 1.3400 with little luck. In welcome news EU negotiators are preparing to travel to London to resume Brexit negotiations following the self-isolation of a number of officials due to confirmed COVID 19 infections. It now isn’t a case of the months ticking away to agree a deal but rather the days and the EU summit on 10-11th December is looming. If that deadline is missed then all eyes will be on the most important one of all - 31st December. There is final PMIs released next week as well as MPC member Silvana Tenreyro speaking a couple of times.
Key MoversThe impasse regarding the $2 trillion EU funding bill remains with Viktor Orban and Mateusz Morawiecki, the Prime Ministers of Hungary and Poland respectively, showing no willingness to compromise. This stems from the mechanism within the EU budget that requires countries to uphold the rule of law – something that has been lacking under the current aforementioned leaders. This could lead to the much needed funding bill being held up acting as a detriment to the EU recovery. Over in the US, whilst holidaymakers are tucking into their Thanksgiving meals, incumbent President Donald Trump has signalled for the first time that he will leave the White House if Joe Biden is confirmed by the electoral college on 14th December. Currently Biden leads the electoral college by 306 votes vs 232 (remember you need 270 to win) whilst Trump is continuing to issue unsubstantiated claims of voter fraud.
- GBP/USD: 1.3320 - 1.3400 ▲
- GBP/EUR: 1.1200 - 1.1270 ▲
- GBP/AUD: 1.8110 - 1.8160 ▼
- EUR/USD: 1.1880 - 1.1940 ▲