Pound to euro exchange rate: GBP flounders in face of Brexit deal chaos

Pound to euro exchange rate: GBP flounders in face of Brexit deal chaos

The pound recovered slightly against the  uro yesterday after a week of dramatic losses in the face of Brexit trade talks. With the threat of a “no-deal” Brexit ongoing, and the UK Government unveiling its “international law breaking” Internal Market Bill, it is likely this isn’t the end of ups and downs for the exchange rate.

“Sterling had a choppy trading day against the euro yesterday, initially trading in the red before recovering some ground – enough to close the day unchanged – after reports that the EU would not look to scrap post-Brexit trade talks based on the newly published internal market bill,” he explained.

“Nevertheless, those trade talks will remain the primary centre of attention today, with the latest round set to conclude this afternoon, and another likely deluge of downbeat media comments from the chief negotiators set to put further downward pressure on the pound.

“Investors will also pay close attention to this lunchtime’s ECB decision, with expectations that the Bank will try and talk down the value of the common currency.”

George Vessey, an expert from Western Union Business Solutions added: “The UK government’s plan to override parts of the Brexit divorce deal will break international law, which threatens to damage the UK’s global standing and ability to form future international agreements.

Published at Thu, 10 Sep 2020 07:04:57 +0000