Once more at Foreign Currency we have the unfortunate task of discussing another tragic terror attack, this time on UK soil. At the time of writing there are four confirmed deaths but the attack is no longer ongoing. Our thoughts are with the victims and their families. Details will continue to emerge, but it seems like the backlash on the currency markets is over. There was a sudden knee-jerk reaction in the markets to the news of the attack, but as with the unfortunately frequent tragedies we have experienced recently in Brussels, Germany, and Paris, once a situation is reportedly contained, those losses on the currency quickly recover.
Another feature of anxiety for the Pound yesterday prior to the attack was the lead up to a vote in the Scottish Parliament. The vote was whether to demand a second Referendum on Scottish Independence. The vote count suggest they had the numbers to carry the process of a second Referendum through its first official step, however, out of deference to yesterday’s events, this has been delayed is yet to be rescheduled.
Two comments from separate European officials are adding positive elements to the mixed atmosphere as we run towards the beginning of formal negotiations to leave the EU.
Firstly an official on the Dutch Advisory council stated the most constructive approach for UK-EU relations would be to construct a similar free trade deal as what is envisioned between Canada and the EU.
This was followed just a few hours later by the EU’s head Brexit negotiator Barnier, Yesterday he stated he would tell the European Commission that the EU’s goal is a UK free trade deal, and also stated worryingly that some in the UK don’t want a deal.
After very public and disheartening posturing from many EU officials, this indication of a positive goal from the man at the helm of the EU’s negotiating team, and a tinge of worry that they themselves would not be able to achieve a deal with the UK, should continue to guarantee some foundations for Sterling value heading into next Wednesday.
Will this be enough to suggest a softer Brexit and quieten calls for Scottish Independence? This will be an evolving debate preceding and proceeding the beginning of negotiations, and reading this market report daily is not enough to remain up to date in a market which changes by the second.
I strongly recommend that anyone with a requirements involving Sterling, whether buying or selling, over the next six months, should contact me to discuss your transfer in more detail and to outline the options available to you. Email me at firstname.lastname@example.org or call us on 01494 725 353.
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