Sterling will be the currency in the spotlight this week in what will be one of the most important few days within the 5-year Brexit divorce process. The weekend failed to produce a deal with 3 issues remaining. Sterling has slipped in early Monday dealing as fear kicks in.
Negotiations will reconvene in Brussels today as both sides attempt to finalise a deal imminently. The 3 issues remaining include fisheries, the level playing field, and how any deal would be enforced. It’s become apparent that optimism over a solution to the fisheries policy is beginning to emerge, with the prospect of a breakthrough today looking possible. Sterling will be whipped around this week as a flood of headlines cross the new wires.
The European Central Bank will make an announcement on monetary policy on Thursday. It’s likely the central bank announce another round of stimulus to assist their ailing economic region. The euro has been on an incredibly strong run lately, gaining 4 cents against the US dollar in the last couple of weeks and almost 3 versus the pound in a similar amount of time.
Elsewhere, attention will also be on the vaccine roll out attempt across a number of countries. The UK begins its process this week with many other countries likely to follow suit shortly.
8:42am, December 7th 2020
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