- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- October 2, 2018
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Sterling gained against after the UK was reported to be in the process of preparing a compromise on the Irish border issue in Brexit negotiations with the European Union.
The reports, which came amid the Conservative Party Conference, could promise a necessary breakthrough or at least a remarkable step towards a trade accord ahead of the EU summit due later this month.
If confirmed, the reportedly new stance heralds a major shift on the UK’s previous position that Northern Ireland could not have different rules from the rest of the UK. The issue has for long been a sticking point in the Brexit negotiations, which is due to take place on 29 March 2019.
However, a divisive ruling Conservative Party conference this week could weaken the currency.
At her party’s annual conference this week, May will defend her plan for leaving the EU. Critics like ex-foreign secretary Boris Johnson could openly defy her.
Deep divisions within the party could turn this conference into a disaster for May, which could easily have negative effects for sterling.
The government might end up without any Brexit plan whatsoever. Whichever way one looks at it, the next few days will be uncomfortable for sterling.