Sterling had its best 48 hours in more than three years, surging above $1.2700 and touching €1.150 last Friday after the European side expressed optimism about the likelihood of a Brexit deal. European Council President Donald Tusk said there were “promising signals” that an agreement could be reached after UK Brexit Secretary Stephen Barclay met with EU Chief negotiator Michel Barnier.
However, the Pound slipped in overnight trading after the Sunday open, following leaked reports in the Austrian press saying EU leaders were still preparing for an extension beyond 31 October because some in Brussels are demanding further concessions from the UK. With the EU summit set to begin on Thursday,17 October it appears there is still a lot of work to do.
In other positive news from Friday, the US and China agreed a truce, with the former freezing any further tariffs and the latter agreeing to increase agricultural purchases from the US. US stock markets rallied on the news, but analysts warned that the truce lacked details and that neither side rolled back any tariffs, which will still have a negative effect on global growth.
Today, the Queen will make her 65th Speech to Parliament outlining the government’s plans for the next parliamentary session. Brexit and the withdrawal agreement are likely to make up a large part of the speech, however it is widely expected that British Prime Minister Boris Johnson will look to announce parts of an election manifesto regarding increased spending on the NHS and police.
The US is celebrating the anniversary of Christopher Columbus’s arrival in the Americas in 1492. With no other top-tier data released elsewhere, Brexit and the Queen’s Speech will probably hog the headlines.
Sterling jumps, has best day since March