The pound was volatile yesterday, as UK and EU officials embarked on the last day of Brexit talks. Talks with the Democratic Unionist Party ensued over the plans for Northern Ireland. They had previously expressed concerns over proposals to replace the backstop, which would see Northern Ireland treated differently to the rest of the UK. Discussions also focussed on the so-called ‘consent mechanism’, which would give Northern Irish communities a regular say over the policies that come into effect.
There was suggestion yesterday that the talks had gone as far as they could, and could only progress once the DUP was on board.
This morning, it has materialised that the DUP have rejected Johnson’s Brexit plan, which caused the pound to weaken against the euro and the dollar. They said that they will continue to work with the government to come up with a “sensible” deal, however issues remain over customs and consent in Northern Ireland.
Inflation data for the UK was released yesterday, and is rising slower than expected at 1.7%. This September figure matched August and fell below the prediction of 1.8%.
