Brexit Talks Leave The Pound Volatile

There was a lot of movement between the GBP to Euro and GBP to US Dollar rate on Friday and this was dictated by the Brexit news and whether the trade talks would continue. This saw the rates finish the day off at 1.1031 and 1.2821 respectively, according to the Foreign Exchange Market. Boris Johnson made an announcement that indicated that the UK should ready itself for a trade deal that is much like Australia.

The Euro nudged slightly higher on Friday as market mood improved, giving the single currency the ability to find gains against the US Dollar. Despite this, the gains were relatively limited as the investors in the EUR showed concerns about the ever-increasing coronavirus cases, which is causing problems for the Eurozone economy. This week is likely to see much of the same as coronavirus cases and further restrictions are likely to govern the single currency.

Demand for the US Dollar decreased following news on Friday that US Pharmaceutical company Pfizer had plans to apply for authorisation of a vaccine in November. However, the losses were overturned slightly by news that US retail sales figures had improved and sales growth was increasing at its fastest rate since June.

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