The pound hit a 28-month low against the euro yesterday, as a no-deal Brexit seems more and more likely. Michael Gove said at the weekend that the government was working ‘on the assumption’ that the UK will be leaving without a deal. Boris Johnson’s tour around the country continues today with a visit to Wales, and any comments from him on Brexit could have an impact.
Meanwhile, the euro is choppy as the markets await economic, business and consumer confidence and sentiment figures, most of which are expected to show a drop, only reinforcing Mario Draghi’s statement that the global economy is getting ‘worse and worse’. A drop further below what is expected could also signal a heightened likelihood of a September rate cut.
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