Pound suffers as optimism over Johnson’s Brexit proposals
[vc_row][vc_column][vc_column_text]An initially positive reaction to Boris Johnson’s Brexit proposal was not enough to keep the pound on an uptrend for long, with the Irish border issue still proving contentious.
As EU officials showed little enthusiasm for Johnson’s ‘final offer’ a sense of Brexit-based anxiety soon started to drag on GBP exchange rates again.
With French President Emmanuel Macron giving Johnson until the end of the week to overhaul his plan the prospect of a deal remained elusive.
In the wake of September’s underwhelming raft of UK PMIs, which saw the service sector unexpectedly fall into contraction, investors saw little cause for confidence in the economic outlook.
As forecasts point towards a slowdown in August’s monthly gross domestic product figure the pound may struggle to improve in the days ahead.
Unless the economy can demonstrate resilient growth in the face of ongoing political jitters GBP exchange rates look set to come under renewed pressure.
A widening of the UK trade deficit could also see the pound fall further out of favour this week, given the continued lack of clarity surrounding the UK’s future trade relationships.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
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* Information courtesy of Currencies Direct, Philip McHugh
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)
The contents of this report are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. Currencies Direct cannot be held responsible for any loss or damages arising from any action taken following consideration of this information. This article was written by Currencies Direct.
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