British pound began to recover during Monday trading, following last week’s 2-1/2 month low against dollar
The pound was worth 1,32 against the dollar between January and February. Yet, the pound began to drop under 1,29 against the dollar in the first week of February. The biggest drop was present last week, when the pound tumbled almost 2,5% against the dollar. This represented its biggest weekly drop in last seven weeks.
The pound was affected by uncertainty around Britain’s trade talks with the European Union, which should be agreed by the end of the year. While Brexit left the EU in the end of January, Brexit transition period ends in the end of the year. Yet, markets were calmed down on Monday by the information that trade talks already started. In reaction, the pound grew in 0,6%.
The European Commission presented draft directives, based on which Britain and the UK should negotiate on future trading relationship, justice, security, foreign policy or Britain’s presence in the EU. British representatives should now comment on the draft.
