Subdued, slightly concerned but not without hope was probably the best way to describe the pound on Monday.
Given the lack of progress over the weekend – the bloc said Boris Johnson needs to move ‘further and faster’ if he is to secure a deal in time – and the sheer exuberance seen across Thursday and Friday, it wouldn’t have been a surprise to see sterling suffer a severe comedown.
Instead the currency has kept its losses in check. It’s not been without its wobbles, sure; however, against the dollar it has fallen 0.3%, while against the euro it shrunk just 0.1%, strengthening as the day went on. Worse off was the FTSE 250 – after a stupendous Friday, which saw it post its biggest one-day rise since 2010, the mid-tier index found itself slipping 0.8% to dip under 19900.
The pound’s improving performance meant it remained a tough day for the FTSE 100. Despite the Dow Jones opening unchanged at 26800, scepticism surrounding the ‘partial trade deal’ between the US and China has left Europe in the red. The UK index lost more than half a percent as it fell below 7200, while the DAX and CAC dropped 0.2% and 0.4% respectively.
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