Monday, 6 August 2018

Sterling sinks to 11-month low after trade minister Liam Fox's no-deal Brexit remark



The pound sank to an 11-month low on Monday after trade minister Liam Fox warned Britain could crash out of the European Union without a trade deal.
 
Sterling fell half a cent to $1.2938, its lowest since 5 September last year. It fell 0.2% against the euro.
 
 
With less than eight months until Britain quits the bloc, the prominent Brexiteer put the odds of the UK leaving without a deal over their future relationship at "60-40".


Last year, he said a trade deal with the EU would be "one of the easiest in human history".


Dr Fox's comments come after the governor of the Bank of England warned the risk of the UK leaving the EU without a deal was "uncomfortably high".
 
 
Commerzbank currency strategist Ulrich Leuchtmann said: "The voices forecasting a hard Brexit are becoming increasingly shrill. The FX market is slowly beginning to work out that these people might successfully torpedo a constructive solution.


"I consider the Brexiteers' promise that the UK 'would enjoy unimaginable wealth' outside the EU to be nonsense."





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