Friday 11th September 2020
The pound lost further ground today as the EU objected to a new government bill that would unilaterally overturn the Withdrawal Agreement. NAB’s Gavin Friend says observers have been aghast at the actions of the UK government and that’s being felt in the pound. But has the weakened pound held back the Euro? The ECB’s Christine Lagarde signalled that the ECB was watching the rising exchange rate, but it was not a target for the central bank. Does that give the currency permission to rise higher? Meanwhile, uncertainty remains in US equities, falling markedly today, with the US dollar holding its own, most likely because of the Sterling effect. Weekly jobs numbers in the US also disappointed a little.