LONDON – The pound is little changed against the dollar and the euro in early trade on Monday morning, as Britain officially begins Brexit negotiations with the European Union.
Brexit Minister David Davis will begin talks with EU officials in Brussels on Monday to work out a deal on Britain’s exit from the EU and its future relationship with the bloc. Officials on both sides have until March 2019 to work out a deal, after which Britain will official exit the EU.
CMC Markets’ chief market analyst Micheal Hewson says in an email: “The initial tone of these talks could well offer significant clues as to how long, protracted and adversarial they are likely to be.”
The other major story on Monday morning is a “potential terrorist attack” in North London, where a van was driven into a crowd outside a mosque in the early hours of the morning. One person has been confirmed dead and at least 10 are injured.
Sterling is holding steady against both the dollar and euro on Monday morning. The pound is down 0.07% against the dollar to $1.2771 at just before 7.30 a.m. BST (2.30 a.m. ET):
The pound is ever so slightly worse-off against the euro, down 0.08% to €1.1405:
The euro got an overnight boost after French President Emmanuel Macron secured a comfortable majority in parliament in Sunday’s election.
However, Hewson cautions: “Macron will need to tread carefully, with some questioning the validity of his mandate on a 45% turnout, the lowest in fifty years.
“He will also face an enormous amount of resistance on the ground from the vested interests of the trade unions which still wield an enormous amount of influence, and could make life very difficult for the inexperienced new President and his party.”