The pound made fleeting gains on Thursday, driven by hopes for a solid economic rebound in the UK this year.
Brexit uncertainty grew as senior officials from the UK and EU both raised concerns over the chances of a trade deal as the EU’s chief negotiator, Michel Barnier, arrived back in London for face-to-face talks at the weekend.
Meanwhile, as the UK government announced its intention to return to a tier system once the second national lockdown ends, this failed to encourage much optimism among investors.
With Brexit-based uncertainty and the impact of the Covid-19 crisis looking set to weigh on the economy for the remainder of the year, there was limited potential for pound gains.
November’s finalised UK manufacturing and services PMIs may put fresh pressure on GBP exchange rates this week.
Confirmation that the service sector experienced a major loss of momentum on the month would add to fears that the fourth quarter GDP will prove negative.
Unless there is a significant positive revision to the PMI, this looks set to keep the pound biased to the downside in the days ahead.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)