24/09/2018 - Pounds Struggles With No Deal Threat

GBP

The Pound fell significantly on Friday after the exchange rate plummeted in response to Prime Minister Theresa May's fiery Brexit speech which hammered home the serious threat of a no-deal exit.

In a statement at Downing Street she said the EU must treat the UK with more "respect" in Brexit negotiations and for EU leaders to reject her plan with no alternative at this "late stage of negotiations" was "not acceptable". She said talks had reached an "impasse" and could only be unblocked with "serious engagement" from the EU.

At an EU summit on Thursday, European Council President Donald Tusk said Mrs May's chequers plan "will not work". The pound's fall against the dollar and the euro deepened following Mrs May's statement in a week which saw the pound rally to a two-month high amid hopes of a breakthrough in exit talks.

The two sides are trying to reach a deal by November however they want to avoid a hard border - physical infrastructure like cameras or guard posts - between Northern Ireland and the Irish Republic but cannot agree on how. Mrs May says her plan for the UK and EU to share a "common rule book" for goods, but not services, is the only credible way to avoid a hard border.

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