Blog

Market Update

• Posted by currencies in Bank of England, Brexit, coronavirus, Dollar, Economy, EUR, Fed, GBP, Prime Minister, Sterling, UK, Uncategorised
• October 12, 2020
• No Comments

UK PM Boris Johnson is expected to announce a new three-tier lockdown system later today in a further effort to stem the spread of Covid-19.

The new system will allow the government to put certain areas in lockdown depending on the current infection rate and will prevent a further national lockdown from happening.

While the new measures have not yet been officially announced, it is likely that in the most severe cases that pubs will have to close, along with gyms and restaurants, and that households will be unable to mix. According to media reports, schools and universities will remain open.

EU/UK trade talks will intensify this week ahead of PM Boris Johnson’s October 15 deadline. While this deadline may be flexible, Johnson wants to know this Thursday if a deal is possible, and if a deal is not possible then both sides should move on and fully prepare for WTO-trade terms from the start of next year.

This week also sees the latest European Council meeting, starting on October 15, where post-Brexit trade talks will dominate the agenda.

Big week ahead for Sterling.