Irish border is under discussion
The sterling exchange rate rose to a high of 1.1289 in the last week, this morning against GBP for GBP.
Britain Prime Minister Boris Johnson travels to Luxembourg at lunchtime to meet with European Commission President Jean-Claude Juncker. This is the first meeting since Boris Johnson took office as Prime Minister. The meeting is expected to address how the Irish Border Miracle could work in practice.
The pound has increased on renewed optimism that an agreement between Britain and the EU will be reached. It has been reported that the Prime Minister will not request another extension until 31
It is also worth noting tomorrow's hearing before the Supreme Court to decide whether Parliament's vote is indeed lawful. It follows the first case of the English High Court, in which it was found to be lawful, although the Scottish courts found the proroguing unlawful. In all developments, Parliament could return and possibly put additional pressure on it if the court ruled against the government.
Another round of quantitative easing
The euro is also coming under pressure after the European Central Bank (ECB) last week, lowering the deposit rate and reintroducing another round of quantitative easing into the so-called QE2. The ECB is expected to inject around € 20 billion into the economy to stimulate growth and inflation and fight a recession. The policy is in sharp contrast to the British side, where the Bank of England has openly talked about a future rate hike.
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