The pound has made some impressive gains during the last few days opening up positively at the start of the week against a number of major currencies.

Britain’s financial services minister John Glen said yesterday that the UK is confident that a deal with be done ‘imminently’ with the European Union and this is one of the reasons for the recent bout of sterling strength.

The UK is looking to hammer out a deal which means a better version of access to financial markets and means that Brussels will allow firms overseas to trade as long as their rules in their own country are very similar to those currently in place in the European Union.

Glen went on to say ‘I am extremely confident we will reach an imminent deal… there is common ground. That is why we are increasingly positive on the expectation of reaching a deal.’ UK Brexit Secretary Dominic Raab has also spoken about having a deal done by 21st November so if these rumours have any truth in them this is why we have seen the pound make the gains.

Currency Pair% Change in 30 daysDifference on £200,000
GBPEUR2.2%€5,050 EUR
GBPUSD2.1%$5,600 USD
GBPAUD3.1%$10,140 AUD
UK lockdown

UK Services Slowdown

Growth in the UK Services Sector has fallen to its lowest level in seven months as companies appear to be concerned about the outlook ahead. The data was the lowest since immediately after the Brexit vote in June 2016 according to the survey.

The data showed a fall to 52.2 in October from 53.9 in September and this was lower than the expectation. Consumer growth has been relatively positive over the last few months but now appears to be showing signs of a slowdown as companies are concerning themselves with the risks associated with the current Brexit issue.

The poll also confirmed that expectations for better growth over the next year are the lowest since the Brexit vote.

Sterling fell briefly after the announcement but managed to stay relatively strong as the market appears to be focused on the latest Brexit news which seems to be going in the right direction as far as the pound is concerned.

With the Bank of England having suggested last week that it may be prepared to increase interest rates quicker than the expectation and this has also provided the pound with a boost.

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