Exchange rate news
Following Teresa May's comments on Tuesday, the Pound initially dipped and then recovered yesterday in one of its strongest days since 1998 against a basket of currencies.
Against the Euro, the rate has stabilised - at least for the short term at around 1.16, close to midway between recent highs at 1.19 and lows around 1.11.
In terms of Brexit, we are only at the stage of opening skirmishes, with the UK government seemingly setting out its its negotiating stall in a comparatively aggressive way, stating that the EU "needs" the UK as a trading partner more than the UK needs the EU, and in turn that a trade war, or at least the inability to play nicely in terms of reciprocal trade agreements, would be to the greater detriment of the EU than the UK. This has inevitably provoked a rebuke in the European press, citing "Little England" mentality.
The market tends to set psychological "rounded" levels for currency exchange rates. With the Pound/Euro at the moment those levels seem to be 1.10 and 1.20. The rate is fluctuating*, but once breached, is expected to break out one way or the other.
