The pound is down against both the euro and the dollar this morning. This is possibly due to further uncertainty surrounding Brexit, following reports that EU officials have rejected Boris Johnson’s Brexit policy. The EU’s chief Brexit negotiator, Michel Barnier, said that removing the backstop was unacceptable, whilst Jean-Claude Juncker reiterated that the withdrawal deal that has already been negotiated is the best one possible. He did add, however, that he’d be available if the UK wants to hold talks.
As summer recess starts today, uncertainty surrounding Brexit is likely to continue until September. When Parliament starts up again, we could see events, such as a general election, that may spell volatility for the pound.
