OUTLOOK: BEARISH
BRITISH POUND GROANS ON PROLONGED BREXIT NEGOTIATIONS
BRITISH POUND GROANS ON PROLONGED BREXIT NEGOTIATIONS
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GBP remains suspended by political angst over the resolution of an almost five-year divorce agreement between the United Kingdom and European Union. Last week, EU chief Brexit negotiator Michel Barnier tweeted guidelines for businesses to prepare for potential cross-border friction after the December 31, 2020 deadline. In the report, it states that:
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There will be broad and far-reaching consequences for public administrations, businesses and citizens as of 1 January 2021, regardless of the outcome of negotiations.
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GBP EYES VIRUS-HIT GDP DATA
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Sterling traders will also be anxiously waiting for the release of preliminary Q2 UK GDP data.
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These figures are unlikely to show an underlying optimism.