The British pound strengthened against the US dollar on Britain’s first day of trading outside the European Union but weakened against the euro amid warnings of tightened lockdown measures.
While sterling rallied against the dollar in early trading, breaking above $1.37 for the first time since May 2018, the gain was later pared back with the pound trading at $1.3645 at 1.07pm London time, a drop of 0.2 per cent. Meanwhile, it was 0.82 per cent down against the euro at €1.1093.
“The pound has started the first day of the year in a cautious mood, rising only slightly against the dollar and falling against the euro," said Fawad Razaqzada, market analyst at Think Markets.
"The latest lockdowns have dampened investor enthusiasm towards the pound, especially as Prime Minister Boris Johnson warned of tougher new measures to control the Covid surge across the UK.”
The pound has strengthened against both the dollar and euro since the EU trade deal was finally agreed on Christmas Eve, cementing new trading rules.
Although the deal does not cover finance, an extension was applied last week allowing financial services companies to use platforms in the EU for swap trading until March 2021.
Despite a record number of Covid-19 cases and warnings of even tighter movement restrictions to control the spread of the virus, Mr Razaqzada expects sterling to rise further over time “as investors continue to price out the risks of a no-deal Brexit”.
“As a minimum, I think $1.40 is where the GBP/USD could easily rise to before we see any real troubles,” he said.
However, John Goldie, FX dealer at Argentex, said he was “not convinced that there is much more upside yet”.
“At these levels it may be difficult to continue to push higher with further escalations in the Covid numbers and the prospect of longer, more stringent lockdowns to come," Mr Goldie said.
"In that respect, while I do anticipate further upside for the pound this year, including a comfortable return into the $1.40s, I suspect that the virus will keep things under wraps as we start the new year.”
Commerzbank's head of FX and commodity research Ulrich Leuchtmann said sterling's rally after the Brexit trade deal was "disappointingly limited", but that it has further scope for gains in the next few days as traders adjust positioning upon their return from holiday.
Meanwhile, stocks in London rose sharply on Monday amid optimism over the distribution of a second coronavirus vaccine.
The FTSE 100 index of larger companies rose 3 per cent in early trading, while the more UK-focused FTSE 250 rose 1.5 per cent. The surge tapered off later in the day with the FTSE 100 sitting at 6,634 at 1.18pm London time, a rise of 2.7 per cent, and the FTSE 250 up 1.08 per cent at 20,709.
Adrian Lowcock, head of personal investing at Willis Owen, said the year had started with a bang as the UK markets rallied following Britain’s exit from the EU, and the country felt more hopeful about the end of the Covid-19 crisis.
"Investors should temper any excitement in markets though, as today’s enthusiasm may not last. The global economy faces many challenges even once the pandemic has passed,” he said.
"For market participants with a long-term outlook the concern that Brexit might constitute the beginning of renewed economic decline in the UK is more likely to dominate."
Naeem Aslam, chief market analyst at Avatrade, said investors must keep in mind that the Covid-19 situation in the UK “is still getting out of hand”.
“The fact is that it will take some time to bring the coronavirus situation under control, and that means full economic recovery may not be able to get back fully on track until Easter this year,” he said.
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
ICC Awards for 2021
MEN
Cricketer of the Year – Shaheen Afridi (Pakistan)
T20 Cricketer of the Year – Mohammad Rizwan (Pakistan)
ODI Cricketer of the Year – Babar Azam (Pakistan)
Test Cricketer of the Year – Joe Root (England)
WOMEN
Cricketer of the Year – Smriti Mandhana (India)
ODI Cricketer of the Year – Lizelle Lee (South Africa)
T20 Cricketer of the Year – Tammy Beaumont (England)
FROM%20THE%20ASHES
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Company%20profile
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The specs
Engine: 1.5-litre 4-cyl turbo
Power: 194hp at 5,600rpm
Torque: 275Nm from 2,000-4,000rpm
Transmission: 6-speed auto
Price: from Dh155,000
On sale: now
Six tips to secure your smart home
Most smart home devices are controlled via the owner's smartphone. Therefore, if you are using public wi-fi on your phone, always use a VPN (virtual private network) that offers strong security features and anonymises your internet connection.
Keep your smart home devices’ software up-to-date. Device makers often send regular updates - follow them without fail as they could provide protection from a new security risk.
Use two-factor authentication so that in addition to a password, your identity is authenticated by a second sign-in step like a code sent to your mobile number.
Set up a separate guest network for acquaintances and visitors to ensure the privacy of your IoT devices’ network.
Change the default privacy and security settings of your IoT devices to take extra steps to secure yourself and your home.
Always give your router a unique name, replacing the one generated by the manufacturer, to ensure a hacker cannot ascertain its make or model number.
CHATGPT%20ENTERPRISE%20FEATURES
%3Cp%3E%E2%80%A2%20Enterprise-grade%20security%20and%20privacy%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Unlimited%20higher-speed%20GPT-4%20access%20with%20no%20caps%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Longer%20context%20windows%20for%20processing%20longer%20inputs%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Advanced%20data%20analysis%20capabilities%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Customisation%20options%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Shareable%20chat%20templates%20that%20companies%20can%20use%20to%20collaborate%20and%20build%20common%20workflows%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Analytics%20dashboard%20for%20usage%20insights%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Free%20credits%20to%20use%20OpenAI%20APIs%20to%20extend%20OpenAI%20into%20a%20fully-custom%20solution%20for%20enterprises%3C%2Fp%3E%0A
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
ICC Women's T20 World Cup Asia Qualifier 2025, Thailand
UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final
If you go
Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.
Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com
A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com
The years Ramadan fell in May
THE SPECS
Aston Martin Rapide AMR
Engine: 6.0-litre V12
Transmission: Touchtronic III eight-speed automatic
Power: 595bhp
Torque: 630Nm
Price: Dh999,563
More from Rashmee Roshan Lall
Company%20Profile
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Specs%3A%202024%20McLaren%20Artura%20Spider
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%203.0-litre%20twin-turbo%20V6%20and%20electric%20motor%3Cbr%3E%3Cstrong%3EMax%20power%3A%3C%2Fstrong%3E%20700hp%20at%207%2C500rpm%3Cbr%3E%3Cstrong%3EMax%20torque%3A%3C%2Fstrong%3E%20720Nm%20at%202%2C250rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%3C%2Fstrong%3E%20Eight-speed%20dual-clutch%20auto%3Cbr%3E%3Cstrong%3E0-100km%2Fh%3A%3C%2Fstrong%3E%203.0sec%3Cbr%3E%3Cstrong%3ETop%20speed%3A%20%3C%2Fstrong%3E330kph%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh1.14%20million%20(%24311%2C000)%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
Read more from Aya Iskandarani
Wayne Rooney's career
Everton (2002-2004)
- Appearances: 48
- Goals: 17
Manchester United (2004-2017)
- Appearances: 496
- Goals: 253
England (2003-)
- Appearances: 119
- Goals: 53
MATCH INFO
Champions League quarter-final, first leg
Ajax v Juventus, Wednesday, 11pm (UAE)
Match on BeIN Sports
