The Pound is starting the week on the backfoot versus other major currencies. During the weekend fears grew over a second wave of the pandemic, with the country’s health secretary warning of a tipping point approaching and refusing to rule out a new national lockdown. Meanwhile, trade negotiations with the EU continue to be under strain with the outcome remaining uncertain. These are challenging times for sterling and further weakness can be expected as the prospect of negative interest rates, an idea floated last week by Bank of England officials, becomes an increasingly realistic prospect.
