- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- July 23, 2018
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Sterling looks set for more volatility this week however amid growing talk of a likely “hard” Brexit — crashing out of the European Union without a trade deal in place.
A weekend poll revealed Britons were overwhelmingly opposed to Prime Minister Theresa May’s Brexit plan and would instead support a new right-wing political party committed to quitting the bloc.
The UK parliament starts its summer recess this week and markets are now awaiting next week’s Bank of England meeting to see if the bank decides to raise rates.
The pound continues to remain on the defensive, although there is at least some relief that an immediate leadership challenge to PM May appears unlikely before the parliamentary summer recess.
It leaves the upcoming BoE policy meeting on 2nd August as the main event for the pound over the holiday period.
Quitting the EU could leave British households up to 960 pounds worse off each year, according to a report.
Households will face higher prices as they absorb costs from labour changes, tariffs, and red tape, it said, whilst consumer businesses could see profits slump by 1-4 percent.