Brexit Fears Diminish Temporarily…


Sterling gained on Friday against the dollar and euro to reverse earlier losses during the week as hard Brexit fears diminished. European Commission chief Ursula Von der Leyen was quoted expressing doubt that a future relationship with the UK can be agreed before the end of 2020. She believes that a transition period longer than 2020 is necessary and this has fuelled optimism that a trade deal could be reached.
Furthermore the pound was supported by the dollar weakening and gains against the euro were very minimal. Attention now turns to when Parliament returns back from Christmas recess with the government reportedly wanting the withdrawal agreement to be ratified by 9th January.

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