Spot light back on Brexit, the pound on a knife edge..

Attention is fully back on Brexit negotiations as we enter another vital period for the UK and EU trying to find a breakthrough, with the 31st December deadline date looming.

Optimism that real progress can be seen has helped the pound start the week at a near two month high against the euro, hitting 1.1160. The British pound was in fact the second best performing currency last week, behind the New Zealand. While we may see some optimism, some are still reporting that trade talks between the UK and EU remain deadlocked, giving evidence of mixed messages keeping the outlook for the pound on a knife edge as we await developments.

Irish foreign minister Simon Coveney said today (Monday 16th) that the UK and EU have 7-10 days to find a way to unlock trade talks, after both sides called on the other to move on their positions on the two of the most troublesome areas, - fisheries and fair competition rules.

Coveney speaking on Ireland's Newstalk radio station went on to say “We really are in the last week to 10 days of this, if there is not a major breakthrough over the next week to 10 days then I think we really are in trouble and the focus will shift to preparing for a no trade deal and all the disruption that that brings,” If Coveney statement is to believed then we could be entering to decisive period for the pound, a breakthrough in talks paving the way for finally reaching a agreement is likely to be a positive for the pound pushing it upwards, however continued failure to make any progress while 31st December deadline looms is likely to keep the pressure on the pound, increasing the risk of it remaining low and possibly weakening.

Talks at this week’s EU summit in Brussels will be vital to the UK and EU making a breakthrough, and any developments or lack of is likely to be seen in the movement in pound sterling’s value. If you are planning to make a currency exchange transfer in the coming days or week, be sure to stay in touch with us at Escape Currencies to be kept up to date with developments, you can call us today 0204 524 7280.

The dust settles on the Biden's wins.

Confirmation of Joe Biden’s win in the US election failed to unsettle the currency market, despite Donald Trump doing his upmost to challenge the decisions in the courts, which so far has proven unsuccessful, given his lawyers have failed to provide any evidence of corruption in the voting counts. The pound has continued to gain steadily against the US Dollar, last week hitting a high of 1.3280 a two-month high and only the second time seen since falling dramatically in March when the markets went into turmoil with GBPUSD dropping below 1.14, as global effects of Covid-19 started to unravel. The pound is now up 15% in value since March.

The near-term future for this currency pair will depend on UK’s ability to agree a smooth exit from the EU by the 31st December, and any moves to taken by the Joe Biden’s new administration. But with Bidden not taking seat in the Whitehouse until January, we can still expect Donald Trump to still have plenty more to say and do in his final month as US President. The president spoke for the first time yesterday since the the election result was confirmed, and again insisted that his administration would not be putting the US into a lockdown, despite rising Covid-19 cases in the country.

Are you planning to send or receive a US Dollar payment, and not sure when to do it or how? Then give us a call today and let us help you Escape the confusion of exchanging your currencies. You can call us on 0204 524 7280