Brexit Uncertainty Slows Down GBP Exchange Rate

The pound continued its momentum through most of the trading session on Thursday after the currency still reacted to the stimulus announcement from Rishi Sunak. Despite this, sentiment dropped during the afternoon after it became apparent that British businesses would face new challenges when selling to Europe. This resulted in the pound finishing the day at 1.1168 against the Euro and 1.2606 against the US Dollar according to the foreign exchange market. However, these Brexit concerns could mean that the pound has a fairly subdued end to the week.

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There was not a lot of movement for the Euro on Thursday as the import and export data for trade in Germany did reach the figures that were expected. Despite this, investors were still relatively pleased with the improvements made during May. However, a lack of economic data today might mean that the Euro remains fairly motionless through trading.

The US Dollar experienced significant sell-off on Wednesday but Thursday saw it gain some support following the announcement that companies with government contracts would not be allowed to use Chinese tech products. The currency also strengthened after there was a small increase in jobless claims and with coronavirus cases increasing, it’s likely that investors are going to seek safety in the US Dollar.

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