Sterling Weaker as Traders Await Brexit Results

Sterling was slightly weaker on Wednesday as the euro rose and traders waited to see whether Britain will be able to clinch a postBrexit trade deal with the European Union during this weeks negotiations.

Also on Wednesday, Chancellor Rishi Sunak will present the details of the Spending Review, which will coincide with the Office of Budget Responsibility releasing its latest projections for the British economy.

Most in the market expect a postBrexit trade deal to be agreed, even if it is a bare bones one, with some talks continuing into the next year.

Meanwhile, EU banks will have to use platforms inside the EU to trade derivatives from January, the blocs securities watchdog said on Wednesday, a move that could cut off the City of London, the worlds biggest derivatives trading hub.

Bank of England interestrate setter Michael Saunders said the longterm effects of Brexit could have a bigger impact on companies than the coronavirus pandemic.

The pandemic has already wiped off some of Britains economic strength, and as result, prospects for its currency.

Britains finance ministry said on Tuesday that the government would spend more than 4 billion pounds 5.3 billion over the next three years to get the longterm unemployed and other jobseekers back to work after the pandemic.

Britains government is on track to borrow roughly 400 billion pounds 534 billion this financial year as it struggles with the social and economic impact of COVID19, which has killed more than 55,000…

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News