The pound has reached a three-month low against the euro as Brexit negotiations between the UK and EU resumed. Over the weekend, the Prime Minister said that the government would be happy with an ‘Australian style’ trade deal, which would be a basic deal based on WTO terms.
A No 10 spokesman also said on Monday the talks “can’t go into the Autumn”, and they need “make progress as soon as possible”. Sticking points between the two sides remain, including fishing rules and the border between Ireland and Northern Ireland.
Sterling also weakened after the Prime Minister announced the introduction of a new plan for UK infrastructure, due to worries over the funding of this. Boris Johnson said there would be a “Rooseveltian” approach to spending.
The UK’s GDP dropped 2.2% in the first quarter of 2020 due to the Covid-19 outbreak, according to a revised estimate released by the Office of National Statistics this morning.
