Sterling dropped to a three week low against the dollar yesterday, and was low against the euro in anticipation of the Prime Minister revealing his plan for an amended Brexit agreement. His new proposals are expected to offer an alternative to the controversial Irish ‘backstop’.
Johnson said yesterday that the “reality” of Brexit will involve custom checks between the border between Northern Ireland and the Republic. According to leaked proposals, the plan involves checks that will take place away from the border. However Ireland’s Deputy Prime Minister, Simon Coveney, said that this idea is a “non-starter.”
It is also thought that the Prime Minister will deliver an ultimatum to the EU today – that they should negotiate Brexit on his terms within the next nine days, or face a no-deal Brexit. He is expected to offer the EU a “fair and reasonable compromise” whilst speaking at the Conservative Party conference today. Johnson said yesterday that he hopes to reach a deal within “the next few days.”
Today we’ll see Construction PMI figures for the UK, which are due to remain in contraction territory for the fifth consecutive month.
