Confidence in Pound Weakens Amidst Brexit Talks
Following a drop in risk sentiment, as well as concerns over Brexit negotiations, the Pound took a dip on Friday according to the Foreign Exchange market. The currency finished the week at 1.0998 against the Euro and 1.2339 against the US Dollar, weakening from the previous day. The currency is at risk of suffering at the mercy of a no-deal Brexit, while concerns of a second wave of Coronavirus infections are causing investors to feel anxious. It’s highly likely that the currency is going to struggle this week as the last round of Brexit negotiations take place.
There was little movement for the Euro as the week came to an end, although matters were not helped by the announcement from the European Central Bank that the economic recovery would be complicated. However, business confidence figures released today could help to bolster the Euro at the start of the week.
Investors still put their trust in the US Dollar as the safe-haven currency became more appealing, as concerns of a second wave of coronavirus seemed likely. The economy is still struggling after many states decided to hit the brakes on reopening and so, investors are concerned that economic recovery might not be as fast as they originally thought it might be.