Sterling exchange rates have significantly dropped off over the course of the trading week following comments from Prime Minister Boris Johnson, suggesting that should a trade deal not be agreed with the EU by October 15th then the UK would be happy to walk away from talks and would start the process of a no deal Brexit.
Historically any heightened chance of a no deal Brexit has been seen as bad news for sterling exchange rates and so far this week history has repeated itself, with GBP/EUR going below 1.10 as an interbank exchange rate this morning and GBP/USD dropping below 1.30.
Talks between the UK and EU have resumed this week and you could expect to hear news over the next few days as to how these talks have progressed, should there be even a slither of good news then sterling exchange rates could make up a little ground, however any further negativity or suggestions that very little progress has been made and the pound may have further to fall.
It is also expected today that social gatherings in households may be limited to 6 people as the Government continue to battle with the balancing act of keeping covid-19 cases down whilst trying to keep the economy progressing, a balancing act that is an extremely difficult one to get right. This may also not have helped sterling exchange rates as it is the UK taking a minor step back after what has lately been some much better economic data.
This market is such a difficult one to navigate at present, with a global pandemic, Brexit talks reaching crunch point, an election in the US and severe economic hangovers around the world post coronavirus it is very difficult to work out what may happen next.
If you have a transaction to carry out involving any major currency and you would like the assistance of one of our experienced and knowledgeable traders then feel free to contact us today and we will be happy to help you through these extremely volatile trading times, we look forward to speaking with you.
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