{"id":72416,"date":"2021-01-06T16:42:27","date_gmt":"2021-01-06T16:42:27","guid":{"rendered":"https:\/\/secondchargemortgageuk.com\/?p=72416"},"modified":"2021-01-06T16:42:29","modified_gmt":"2021-01-06T16:42:29","slug":"sterling-weakens-against-euro-as-post-brexit-deal-rally-falters","status":"publish","type":"post","link":"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/","title":{"rendered":"Sterling weakens against euro as post-Brexit deal rally falters"},"content":{"rendered":"\n

The pound weakened versus the euro on Britain\u2019s first day of trading outside the European Union, but strengthened against a softer dollar, climbing above $1.37 for the first time since May 2018, as traders weighed up Brexit relief with COVID-19 risks.<\/p>\n\n\n\n

The pound had strengthened after a last-minute Brexit deal was agreed on Dec. 24, which set rules for industries such as fishing and agriculture.<\/p>\n\n\n\n

Although the deal does not cover Britain\u2019s finance sector, UK market participants were relieved by an extension which allows them to use platforms in the European Union for swaps trading until March 2021 – a move announced on Thursday in a bid to avoid disruption.<\/p>\n\n\n\n

At 0840 GMT on Monday, the pound changed hands at 89.77 pence per euro, down around 0.5% on the day.<\/p>\n\n\n\n

Versus the weaker dollar, the pound was up 0.2% at $1.3682, having briefly crossed the $1.37 level for the first time since May 2018 early in the European session. The pound gained 2.5% overall against the dollar in December.<\/p>\n\n\n\n

To find out more about how we can assist you with your Second Charge Mortgage please click here<\/a><\/em><\/p>\n\n\n\n

Commerzbank\u2019s head of FX and commodity research, Ulrich Leuchtmann, said that sterling\u2019s recovery after the Brexit deal was agreed was \u201cdisappointingly limited\u201d, but that it has further scope for gains in the next few days as traders adjust their positioning upon their return from holiday.<\/p>\n\n\n\n

Leuchtmann was less bullish on sterling\u2019s longer-term outlook, however.<\/p>\n\n\n\n

\u201cFor market participants with a long-term outlook the concern that Brexit might constitute the beginning of renewed economic decline in the UK is more likely to dominate,\u201d he said.<\/p>\n\n\n\n

Sterling-dollar implied volatility gauges with one-month and three-month maturities, which spiked in December and then fell when the Brexit deal was agreed, have edged up again in the past few days, suggesting traders still expect price swings.<\/p>\n\n\n\n

In bad news for sterling, COVID-19 cases in Britain are at record levels. Prime Minister Boris Johnson said on Sunday that tougher lockdown restrictions were probably on the way.<\/p>\n\n\n\n

RBC Capital Markets analysts wrote in a note to clients that negative interest rates are likely to remain a possibility for the UK because, although a chaotic no-deal Brexit has been avoided, rising COVID-19 infections will have an impact on the Bank of England\u2019s outlook for the economy.<\/p>\n\n\n\n

Market participants are pricing in negative rates in the UK by May 2021.<\/p>\n\n\n\n

Reporting by Elizabeth Howcroft<\/em><\/p>\n\n\n\n

Source: UK Reuters<\/a><\/p>\n\n\n\n

Discover our Mortgage Broker<\/a> services.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The pound weakened versus the euro on Britain\u2019s first day of trading outside the European Union, but strengthened against a softer dollar, climbing above $1.37 for the first time since May 2018, as traders weighed up Brexit relief with COVID-19 risks. The pound had strengthened after a last-minute Brexit deal was agreed on Dec. 24, […]<\/p>\n","protected":false},"author":1,"featured_media":72301,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1978],"tags":[2105,2110,2104],"yst_prominent_words":[110,1340,1332,1330,500,433,102,111],"acf":[],"yoast_head":"\nSterling weakens against euro as post-Brexit deal rally falters<\/title>\n<meta name=\"description\" content=\"The pound weakened versus the euro on Britain\u2019s first day of trading outside the European Union, but strengthened against a softer dollar.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sterling weakens against euro as post-Brexit deal rally falters\" \/>\n<meta property=\"og:description\" content=\"The pound weakened versus the euro on Britain\u2019s first day of trading outside the European Union, but strengthened against a softer dollar.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/\" \/>\n<meta property=\"og:site_name\" content=\"Second Charge Mortgage UK\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-06T16:42:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-06T16:42:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/secondchargemortgageuk.com\/wp-content\/uploads\/2020\/09\/business-1037736_960_720.png\" \/>\n\t<meta property=\"og:image:width\" content=\"626\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/secondchargemortgageuk.com\/#organization\",\"name\":\"UK Mortgage Broker\",\"url\":\"https:\/\/secondchargemortgageuk.com\/\",\"sameAs\":[],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/secondchargemortgageuk.com\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secondchargemortgageuk.com\/wp-content\/uploads\/2020\/01\/transparent.png\",\"width\":726,\"height\":334,\"caption\":\"UK Mortgage Broker\"},\"image\":{\"@id\":\"https:\/\/secondchargemortgageuk.com\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/secondchargemortgageuk.com\/#website\",\"url\":\"https:\/\/secondchargemortgageuk.com\/\",\"name\":\"Second Charge Mortgage UK\",\"description\":\"Mortgage Solutions for Clients with Adverse Credit\",\"publisher\":{\"@id\":\"https:\/\/secondchargemortgageuk.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/secondchargemortgageuk.com\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secondchargemortgageuk.com\/wp-content\/uploads\/2020\/09\/business-1037736_960_720.png\",\"width\":626,\"height\":720,\"caption\":\"Bank of England coronavirus Pound Sterling UK economy UK economic recovery UK Government borrowing UK economic recovery UK economy\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/#webpage\",\"url\":\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/\",\"name\":\"Sterling weakens against euro as post-Brexit deal rally falters\",\"isPartOf\":{\"@id\":\"https:\/\/secondchargemortgageuk.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/#primaryimage\"},\"datePublished\":\"2021-01-06T16:42:27+00:00\",\"dateModified\":\"2021-01-06T16:42:29+00:00\",\"description\":\"The pound weakened versus the euro on Britain\\u2019s first day of trading outside the European Union, but strengthened against a softer dollar.\",\"breadcrumb\":{\"@id\":\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"item\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/secondchargemortgageuk.com\/\",\"url\":\"https:\/\/secondchargemortgageuk.com\/\",\"name\":\"Home\"}},{\"@type\":\"ListItem\",\"position\":2,\"item\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/\",\"url\":\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/\",\"name\":\"Sterling weakens against euro as post-Brexit deal rally falters\"}}]},{\"@type\":\"Article\",\"@id\":\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/#webpage\"},\"author\":{\"@id\":\"https:\/\/secondchargemortgageuk.com\/#\/schema\/person\/2a6baa7be34813e3821576e78b74f615\"},\"headline\":\"Sterling weakens against euro as post-Brexit deal rally falters\",\"datePublished\":\"2021-01-06T16:42:27+00:00\",\"dateModified\":\"2021-01-06T16:42:29+00:00\",\"commentCount\":0,\"mainEntityOfPage\":{\"@id\":\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/#webpage\"},\"publisher\":{\"@id\":\"https:\/\/secondchargemortgageuk.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/#primaryimage\"},\"keywords\":\"Brexit,British pound,Sterling\",\"articleSection\":\"Second Charge Mortgage UK\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/secondchargemortgageuk.com\/sterling-weakens-against-euro-as-post-brexit-deal-rally-falters\/#respond\"]}]},{\"@type\":[\"Person\"],\"@id\":\"https:\/\/secondchargemortgageuk.com\/#\/schema\/person\/2a6baa7be34813e3821576e78b74f615\",\"name\":\"Marketing\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/secondchargemortgageuk.com\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/58097a1900583ccc6a78711c63c1b8f7?s=96&d=mm&r=g\",\"caption\":\"Marketing\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","_links":{"self":[{"href":"https:\/\/secondchargemortgageuk.com\/wp-json\/wp\/v2\/posts\/72416"}],"collection":[{"href":"https:\/\/secondchargemortgageuk.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/secondchargemortgageuk.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/secondchargemortgageuk.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/secondchargemortgageuk.com\/wp-json\/wp\/v2\/comments?post=72416"}],"version-history":[{"count":1,"href":"https:\/\/secondchargemortgageuk.com\/wp-json\/wp\/v2\/posts\/72416\/revisions"}],"predecessor-version":[{"id":72418,"href":"https:\/\/secondchargemortgageuk.com\/wp-json\/wp\/v2\/posts\/72416\/revisions\/72418"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/secondchargemortgageuk.com\/wp-json\/wp\/v2\/media\/72301"}],"wp:attachment":[{"href":"https:\/\/secondchargemortgageuk.com\/wp-json\/wp\/v2\/media?parent=72416"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/secondchargemortgageuk.com\/wp-json\/wp\/v2\/categories?post=72416"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/secondchargemortgageuk.com\/wp-json\/wp\/v2\/tags?post=72416"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/secondchargemortgageuk.com\/wp-json\/wp\/v2\/yst_prominent_words?post=72416"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}