The pound is weak this morning after sinking to a six-month low on Friday. Its drop was due to a series of weak PMI data, which suggested that the economy may have contracted in the second quarter. The rising expectation of an interest rate cut and the strength of the dollar also weighs heavily on the pound, as does constant Brexit uncertainty and the increasing possibility of a no-deal.
In the latest of a series of warnings about ‘no-deal’, former Brexit Chief Philip Rycroft has said that a no-deal scenario is “fraught with risk”. He went on to say that “The rational outcome over the next few months is to get a deal because that is overwhelmingly in the economic interest of both the EU and the UK.”
Taking a more positive stance, Former Defence Secretary Sir Michael Fallon said there was “no reason at all” why new negotiations with the EU could not be completed “the next three months”.
