Bumpy Ride for Sterling

Pound to US dollar exchange rate – sterling looking volatile after breakthrough Brexit developments.

Despite progress in Brussels negotiations the Sterling dipped to $1.1350 today.

Despite Theresa May’s declaration of a “new sense of optimism” surrounding Brexit, the pound appears volatile.

Last Friday morning Theresa May secured a deal with the EU to push Brexit negotiations into their next phase, However fluctuations have come after days of uncertainty in regards to Britain’s divorce from the EU.

Theresa May said: “I have always been clear that this was never going to be an easy process. But there is I believe a new sense of optimism now in the talks”.
All eyes remain firmly fixed on the Brussels negotiations, with the value of currency so closely linked to the outcome of the Brexit talks. Without a deal on Brexit, both the UK and the EU’s remaining 27 member states will face “substantial losses”, according to a recent report.

Also influencing the pound is news of an agreement on the Irish border, after Brexit is keeping the pound stuck at opening levels versus the US dollar so far today, a cautions reaction from the currency market.

A deal on the Irish border was one of the key sticking points that the EU demanded were resolved before negotiations on trade could begin.