- Posted by currencies in Brexit, coronavirus, Currency, Dollar, Economy, EUR, Fed, GBP, Prime Minister, Retail Sales, Sterling, UK, Uncategorised
- June 30, 2021
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The British pound is slightly lower this morning as investors waited to hear whether Britain and European Union will agree to extend an exemption on customs checks on chilled meat shipments to Northern Ireland.
The current grace period waiving checks on British-made sausages and other chilled meats moving to Northern Ireland is due to end today.
British Prime Minister Boris Johnson said yesterday that Britain expects to reach an agreement on extending the exemption soon.
ING FX strategists wrote in a note to clients that low volatility means there are unlikely to be big moves in sterling but “the market will take notice of any progress on trade tension with the EU”.
After the U.S. Federal Reserve’s surprise hawkish shift on June 16, the dollar has broadly strengthened, hurting the pound.
Cable had hit a two-year high of $1.425 at the start of the month, but since the Fed meeting has been mostly in the $1.38-$1.40 range.
Investors are also facing uncertainty over the spread of the Delta variant of COVID-19 in Britain, which earlier this month forced the government to delay full reopening.
The government has said it will fully reopen pubs, restaurants, nightclubs and other hospitality venues on July 19.
Prices charged by British retailers fell slightly faster in June than in May due to a fierce battle between supermarkets, but growing costs linked to COVID-19 and Brexit might add to the rise in broader inflation soon.