Morning Update – Calm down!

Morning all

Let’s just take a breath!

GBP

Reports have come out yesterday that we are close to sealing a deal that would give UK-based financial services firms basic access to EU markets. This is a significant breakthrough in our negotiations and has alleviated some concerns, however this does not detract from the fact that we haven’t come to a resolution regarding the Irish border issue and thus the gains we’ve witness could easily be reversed. It will also be interesting to see what Mark Carney has to say for himself this afternoon being the natural pessimist.

EUR

Bounced back from 2.5 month lows today as the EUR was hit hard by recent USD buying. Analysts said a flood of end-of-month buying of dollars on Wednesday had ceased with the start of November. That, combined with hopes that China would ramp up fiscal stimulus, boosted the EUR and put a plug in the rampage weakening we’ve been seeing.

USD

Watch this space…

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