The pound weakened overnight but has found some support this morning against both the euro and the dollar. The departure of two hard-line Brexiteers, Dominic Cummings and Lee Cain, from Prime Minister Boris Johnson’s inner circle could suggest that the UK are less likely to pursue a ‘no trade deal’ Brexit at the end of this year.
Despite news that the UK economy made a partial recovery between July and September, the pound weakened yesterday as the recovery missed expectations. The economy was predicted to recover by 15.8% but managed to grow by 15.5%. Year-on-year, the economy shrank by 9.6%.
Concerns over the progress of Brexit talks also weakened the pound, with sources reportedly saying that time is running very short to agree a deal. It’s hoped that a deal can be reached before the EU summit next week.
