- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- August 24, 2018
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The British pound slipped against the euro to within a whisker of its weakest since September 2017, hurt by a rally in the single currency and concerns about whether Britain can secure itself a trading deal with the European Union.
Sterling has had a tough month so far, hit by concerns Britain could crash out of the EU without new trading arrangements in place on its scheduled exit day in March next year.
Britain’s Brexit minister Dominic Raab this week said London can get a trade deal before an informal October deadline, but has also laid out the government’s plans in the case of a no-deal exit.
EU leaders, on the other hand, expect to miss the deadline and are likely to have to hold and emergency summit in November to consider any Brexit agreement struck with Britain.
Analysts are expecting that the profound worries about Britain not clinching a deal with the EU could see the pound today drop to a fresh 11-month low versus the euro.
British retail sales growth picked up unexpectedly in August, but major store chains anticipate sharp falls in employment in the months ahead.
The Confederation of British Industry’s (CBI) monthly retail sales gauge rose to +29 in August from +20 in June. A poll of economists had pointed to a fall to +13.
Despite a strong August, the CBI said retailers were downbeat about the outlook.
As it stands even positive UK data is having no impact on the strength of Sterling at the moment as the Brexit situation is controlling the currency movements.