- Posted by currencies in Bank of England, Bremain, Brexit, Currency, Dollar, Economy, EUR, Fed, GBP, Inflation, Mark Carney, No Deal, Prime Minister, Rate Cuts, Referendum, Sterling, UK, Uncategorised
- January 28, 2020
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Sterling has weakened against the Euro this morning alongside dropping to a one week low against the USD. Main reasons being the concern about Britain’s future relationship with the EU has started to impact the exchange rates.
The pound is also volatile ahead of Thursday’s potential interest rate cut by the Bank of England
The European Union will “never, never, never” compromise on the integrity of its single market, its chief Brexit negotiator warned Britain, saying London must now face reality after underestimating the costs of leaving.
It’s been a case that Brexit issues have been off the agenda for a while, but there are now some signs of friction between the two sides as negotiations are gearing up
Also, reports are that Brussels believes European Union judges should have the power to rule on any post-Brexit agreement with the UK as a potential explanation for early sterling weakness.
Other major currencies were broadly stable with the dollar hovering at an eight-week high as investors focused on the economic fallout from the new coronavirus that has killed 106 people in China.