After making some gains yesterday on the back of the Prime Minister’s promise of a ‘bold new deal’, the pound is weaker today against both the euro and the dollar. Its high was possibly short lived due to scepticism from the Labour Party over whether this deal will offer what Theresa May promises.
The possibility of a no-deal Brexit is also weighing on sterling. Chancellor Philip Hammond has said that leaving the EU without a deal would do ‘deliberate’ damage to the British economy. He also said that to “advocate ‘no-deal’ is to hijack the result of the referendum.”
The Bank of England has also warned that investment will suffer under a no-deal Brexit. Ben Broadbent, a senior policymaker, said that businesses would be likely to cancel their investment projects in Britain, if we leave the EU without a deal.
