Sterling falls to five month lows
Sterling fell to five month lows on Friday as fears of the UK leaving without a trade deal weighed on the pound. The pound had its worst week against both the euro and dollar since March when the initial outbreak of Covid occurred.
Positive data release showing the economy grew by 6.6% in July had little impact on the pound. Furthermore news of a potential trade deal with Japan did very little to support the pound also.
Reports that Brussels has stepped up planning for a ‘no-deal’ Brexit after Prime Minister Boris Johnson’s government refused to revoke an ultimatum on breaking the divorce treaty kept the pressure.
The internal bill put forward by Boris Johnson which overrides parts of the withdrawal agreement will be voted on Monday with some MP’s disagreeing as it breaks international law. Sterling is likely to remain highly volatile in the coming weeks due to ongoing Brexit risk.
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