Brexit talks rumble on

Daily Currency Update

GBP - British PoundOnce again Brexit talks resume tomorrow as both the EU and UK look to come to deal before the 'deadline' of the EU summit on 15th October. Even the deadline date has become a cause of confusion/difference with the UK sticking to the week after next whilst there are reports out of Europe that the EU is already considering the end of October. Either way as dates are pushed back the clock is continuing to click towards the end of the year and the shorter this time frame is the more volatility can be expected.Meanwhile, over the weekend Bank of England MPC member Silvana Tenreyro defended the use of potentially using negative interest rates to support businesses and consumers. Tenreyro, who is seen as a 'dove' amongst the MPC because she generally favours looser monetary policy, is positioned almost on the opposite side though of the main man - Governor Andrew Bailey. Bailey's comments on Tuesday last week maintained that it would be a 'sin' to use a tool (in this case negative rates) which was not operationally viable. All this talk of loose monetary policy ought to weigh on Sterling but we open the week up positively against the dollar and euro.