The pound is benefitting from a weaker euro this morning, but is still showing weakness against the dollar. No deal Brexit fears still weigh on sterling ahead of voting for the new Prime Minister, which opens from tomorrow.
A day ahead of voting, it has been reported that Downing Street restricted Boris Johnson’s access to sensitive intelligence whilst he was Foreign Secretary. However, sources close to Boris have said that he saw ‘everything that he needed to see’.
Sterling fell to near two-week lows yesterday after weak economic data and a global drop in bond yields supported the possibility of interest rate cuts. This comes after Governor of the Bank of England, Mark Carney’s suggested earlier this week that a rate cut could be on the way.
Ursula von der Leyen, the nominee for European Commission President, said yesterday that she would have no intention of removing the Irish backstop – signalling that whoever becomes Prime Minister will still have a difficult time reopening negotiations.
