The pound is drifting lower against the euro this morning, ahead of an announcement of progress – or not – made in the latest Brexit talks. So far, it appears that not much has changed, with both sides ‘flatly refusing’ compromise. Meanwhile, the European Commission has begun infringement proceedings against the UK, claiming that its limits on collecting Jobseekers’ Allowance and ‘unjustified’ lifetime bans on re-entering the country go against the bloc’s rules.
There are growing expectations that the Bank of England will introduce further quantitative easing at its June meeting, possibly to the tune of up to £200 billion, which, while keeping the yield on government debt low, could also lower demand for the pound – making investors wary.
