- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- August 21, 2017
- No Comments
Sterling edged back this morning towards an almost 6-week low against the dollar as growing doubts around the progress of Brexit talks with Europe continued to weigh on the currency.
Britain is due to release more information this week to outline its strategy positions in the divorce talks, with ministers striving to head off suggestions that negotiations are going slowly and may be delayed later this year.
Doubts over the government’s handling of the Brexit talks and a collapse this month in expectations for a rise in Bank of England interest rates over the next year have pushed the pound back below $1.30 and 90 pence per euro.
We are now back in the days of more political uncertainty which does leave more questions on the economic outlook so perhaps leading towards more uncertainty for the pound in the coming days.
In July, the EU’s top Brexit negotiator, Michel Barnier, said talks on future relations had become less likely to start in October because of a lack of progress on issues such as how much Britain should pay to leave the EU, the future rights of British and EU citizens, and how to manage a land border in Ireland.
EU officials said progress had been difficult because Britain had no position at all on many issues and that an already-tight timetable could be delayed ahead of the scheduled March 2019 exit.