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Pound bounces back after government Brexit report

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Sterling is trading up 0.5 per cent against the dollar despite government’s assessment report stating that Brexit could cut UK GDP by 3.9 per cent over 15 years and a no-deal Brexit could deliver a 9.3 per cent hit.

In the PMQs today, Prime Minister Theresa May denied criticism that her deal will leave Britain poorer.

She, however, said there would be “damaging uncertainty” if her deal is rejected. “I think the choice is backing the deal so we can build that brighter future or going back to square one,” she added.

Fiona Cincotta from CityIndex had earlier commented: “The pound is tentatively higher against the euro but still struggling against the dollar as traders await some clarification over Brexit from the Bank of England and the government later today… A no-deal Brexit will in no way guarantee a decline in interest rates as the UK economy is slowing down and inflation is on the rise, according to previous comments made by BoE’s governor Mark Carney.

But any more clarification on possible scenarios will be welcomed by the market and help make an assessment on how currencies and bonds will fare over the coming months.”




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