Further Brexit Extensions Dampen Sterling
Thursday 12 November, 2020
Daily Currency UpdateGBP - British poundYesterday Sterling dipped lower as rumours of another extension to the on-going Brexit negotiations swirled. The mid-November deadline looks set to be extended as the two sides are yet to come to a formal agreement on Britain’s exit from the EU. GBP/USD bounced off the 1.33 handle and is now sub 1.32 whereas GBP/EUR tempted to test 1.13 however is now back below 1.12. This morning UK gross domestic product grew by a quarterly record for the months July-September, growing by 15.5%. However, this missed the forecast of 15.8% and certainly doesn’t to cover the crash of over 20% in the 3 months prior. In a further blow for Prime Minister Boris Johnson, his director of communications, Lee Cain, resigned yesterday. This suggests there is a lot of tension in the UK government right now, particular over Brexit and how we are dealing with Covid-19.
Key MoversWith it being a US holiday yesterday, the markets were fairly quiet. However looking ahead we have a busy afternoon thanks to the central banks, with Bailey from the Bank of England, Powel from the Federal Reserve and Lagarde from the European Central Banking all speaking this afternoon.
- GBP/USD: 1.3125 - 1.3250 ▼
- GBP/EUR: 1.1110 - 1.1215 ▼
- GBP/AUD: 1.8050 - 1.8230 ▼
- EUR/USD: 1.1730 - 1.1880 ▲