07/08/2018 - Pound Falls as Liam Fox Warns over No Deal Prospects  

GBP

The Pound fell to an 11-month low yesterday after international trade secretary Liam Fox said over the weekend that the UK was now more likely than not to crash out of the EU without a deal next March. Fox believes the prospects of the UK leaving without an agreement with the EU are now less than even, 60:40 to be precise.

Sterling slipped against the Dollar to its lowest level since September having been highly sensitive in recent days to suggestions that the chances of a no-deal scenario may be rising. This news follows Bank of England governor Mark Carney indicating the risk of the UK leaving without a deal was “uncomfortably high”.

Fox had previously declared that a trade deal with the European Union would be "one of the easiest in human history". He has however had an abrupt U-turn and new prediction that the UK is odds on to crash out of the EU without a deal.

Former Brexit Secretary David Davis believes the EU could make a ‘massive miscalculation’ if it thinks the UK is not ready to walk away from Brexit talks with no deal. But Mr Davis said that both the EU and the British Parliament are keen to strike a deal during ongoing Brexit talks. Davis spent months negotiating with the EU’s Michel Barnier before quitting over Theresa May’s Chequers plan. The two sides hope to reach a deal as soon as October, which would give MPs time to scrutinise it.

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