The highly anticipated talks between the EU’s Michel Barnier, Attorney General Geoffrey Cox and Brexit Secretary Stephen Barclay still show no signs of a breakthrough, prompting concern that the vote on the Prime Minister’s deal could be delayed. This caused the pound to struggle against the euro and continue to weaken.
With Britain due to leave the EU in 22 days, sterling investors are on edge. There is still much uncertainty, not only on the outcome of votes, but also as to when these votes will take place. It seems that the possibility of a no-deal will continue to be the biggest factor in the movements of GBP.
The sterling, however, was unaffected by the announcement that the government may cut trade tariffs in the event of a no-deal. Business Secretary Greg Clark told BBC Radio 4’s Today programme that this cut of tariffs would have ‘big implications’ on UK industry. He also assured that new tariff schedules would be published only after the vote on Prime Minister Theresa May’s Brexit deal, and only if it became clear that the UK would be leaving the EU without a deal.
