A look back at 2020 from the treasury team

Brian Middlemiss, treasury executive, takes a look back at a most unusual year in the foreign exchange markets given Brexit, the US elections, and a nasty bug.
Share on facebook
Share on linkedin
Share on twitter
Share on email
Published 29 December
3 mins

The end of the year is an opportunity to look back over this as on of the strangest of years – certainly the most unusual in the 36 years that I have worked in the foreign exchange markets.

2020 – What was all that about?

A year ago, we were looking forward to life with a new Conservative leader in the UK, an end to Brexit finally on the horizon, electioneering in the US only beginning to pick up as the presidential election year dawned, and just a whispering of a nasty little bug that was originating in China. And here we are, a year later… Brexit still not resolved and looking as though it could now slip into 2021. We have a new president-elect in the US (eventually) and as for that nasty little bug… boom!

The effects of the coronavirus on the world economy cannot be overstated. Global interest rates have been severely affected and, in most cases, are now either close to zero or, in fact, at negative levels. Exchange rates have peaked and troughed more times than Kingda Ka (the world’s tallest rollercoaster). To prove the point, you just need to look at GBP/USD which began the year at the 1.3250 level. As COVID-19 began to move west, the Pound eased to 1.3131, in early March, before plummeting nearly 15% to 1.1485 in just 10 days. The Euro suffered a similar fate, albeit a more modest drop of around 6.5%, as EUR/USD moved from 1.1447 to 1.0690 in the same period. There is no doubt that Sterling had been weakened by the effects of coronavirus, on top of the government’s efforts to deliver Brexit, but what was very clear was the flight to safety for investors, with the US Dollar being the safe haven.

From the low points, both the GBP and EUR have made significant gains against the USD. In fact, as hopes of a Brexit resolution have been raised, dashed and raised again, both currency pairings are likely to go into the festive period at stronger levels than they were a year earlier. GBP/USD at 1.3350 and EUR/USD at 1.2200 at the time of writing.

In my 36 years of working in the markets, I have seen many historic events create havoc in just about every type of investment – whether it’s a shock change of administration, a birth of a new major currency, a handful of gulf wars, 9/11, just about every day of the week preceded by the word ‘black’, a banking crisis or an unforeseen referendum result. All of these events have left a mark and were extremely volatile at the time, but the one thing that they have in common is that the period of turmoil remained relatively short. 2020 has broken that mould. I doubt that there has been a more sustained period of volatility and uncertainty in global markets since the Second World War, and until we see a Brexit deal agreed and COVID-19 finally defeated, there is a reasonable chance that 2021 will start, at least, in the same vein.

From everyone at Nedbank Private Wealth International, I would like to extend this  season’s greetings to you all, and wish you a peaceful and safe New Year.

about the author

Brian Middlemiss

Brian Middlemiss

Brian is responsible for managing the foreign exchange book across the company’s international jurisdictions. As part of the treasury team, he works closely with our relationship managers to provide foreign exchange solutions for our clients.
Brian joined in December 2018 and has over 35 years’ financial markets experience, working for various global banking operations including Lloyds Bank Plc, Royal Bank of Canada and BNP Paribas.


Brian is a member of the Chartered Institute for Securities & Investment and holds the Investment Management Certificate and ACI Dealing Certificate.

Access more of our insights

Our top 10 for 2020

23 Dec

   |   2 mins

As 2020 draws to a close, we look back and list our top 10 articles and webinars from the year. And we're looking forward to 2021 and publishing more content that we hope you will find of use.

Money management

Roast turkey and (self assessment) tax returns

16 Dec

   |   5½ mins

Many see Christmas as a time for festivities, others as the time to file tax returns ahead of the 31 January deadline. But while you and Santa are making your lists, and checking them twice, Pippa Vick flags some pointers to help you with self assessment submissions.

Money management

Capital gains tax: is change coming?

8 Dec

   |   5 mins

Gareth Hughes, partner at Greenwoods GRM, reviews a recent proposal from the Office for Tax Simplification on changes to UK capital gains tax. Ahead of any changes, he provides his thoughts on how clients might mitigate the tax.

Money management

An update on one of life's certainties: questions answered on UK property tax

4 Dec

   |   14 mins

Rachel de Souza of RSM joined Colin Campbell and John Williams to discuss UK property tax changes, how these might be mitigated and answered our audience's questions in a 45 minute webinar.

Get in touch

If you are interested in becoming a client, please complete the form via the ‘become a client’ button below. Alternatively, if you are already a client, or if you have a question about how we help clients in particular circumstances, please use the ‘contact us’ button.

We will get back to you as soon as we can during office hours, which are Monday to Friday, 8am to 8pm (UK time), except for UK public holidays.

Become a Client

Thank you for your interest in Nedbank Private Wealth. Please call us on +44 (0)1624 645000 or complete the requested information and one of our team will get back to you soon. We look forward to speaking with you.  Please note: If you are an EU resident, we are unfortunately unable to offer our services to you at present.

* Required fields

Contact Us

Give us a call today on +44 (0)1624 645000 or please complete the requested information and one of our team will get back to you soon. We look forward to speaking with you.

Our office hours are weekdays from 8am to 8pm UK time, except for UK public holidays.

* Required field

Search suggestions


Beware of scams using Nedbank Private Wealth’s name.


Have you received an email or SMS claiming to be from Nedbank Private Wealth, inviting you to open an account?


Don’t be tricked – Nedbank Private Wealth never contacts members of the public directly, and will never use email or text messages to ask you for your bank details or sensitive personal information.


We are aware of scams using our name and those of our staff. These are usually intended to convince you to send money to the scammers, who use our name because it sounds legitimate.


If you are in any doubt about whether an email or SMS in our name is legitimate, please speak to your private banker, or call the telephone numbers on the “Contact us” page.