Potentially worthwhile GBP v EUR forward contract option on the horizon..
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| "We ensured that Europe got the best possible deal out there". These were the comments of President of the European Commission Ursula von der Leyen yesterday when talking of the trade deal with the US.
We expect to hear from ECB President Christine Lagarde tomorrow on the EU-US trade deal too and how it may affect Europe in the years ahead. It's for this reason we may see € weakness.
"The deal provides crucial stability for our relations with the US at a time of global insecurity" also key comments made yesterday by von der Leyen. Shortly after her speech, President Trump was reported to ask the EU to impose 100% tariffs on India and China. More on this as it unfolds..
As you may have already heard, Poland shot down Russian drones last night after they had entered Polish airspace via Belarus. Ukraine's President Zelensky has suggested the drones were aimed towards Poland and not Ukraine..
Sebastien Lecornu has become France's prime minister. Lecornu is an ally of President Macron and has been promoted from his defense minister position into a near impossible to run job role. As we keep mentioning this has had no bearing whatsoever on the Euro with 'bigger fish to fry' for investors.
Meanwhile in London, the UK is hosting German, Polish, Italian and Ukrainian defense secretaries with a joint press conference due later today.
Clearly we have a lot going on right now and at any moment any of the recent geopolitical news updates can become a major headwind for the Pound. Uncertainty hurts beta-currencies like the Pound and aids safe-haven currencies like the USD and Euro.
A Forward Contract then could be crucial to both hedge against what could happen next with any of the above and what lies ahead this Autumn/winter period.
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