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October 20, 2018
Pound slides further on May's Brexit speech
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Pound slides further on May’s Brexit speech


SterlingImage copyright
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The pound’s fall against the dollar and the euro has deepened following Theresa May’s assertion after an EU summit that “no deal is better than a bad deal”.

Sterling was already trading lower after had EU leaders warned the UK must make compromises on trade and the Irish border to secure a Brexit trade deal.

After the Prime Minister said the UK and EU were at an “impasse” the pound fell further.

The pound dropped from 1% to 1.5% lower against the dollar to $1.3068.

Against the euro, the pound was down 1.1% at €1.1144 after Mrs May’s statement.

“The rhetoric that ‘no deal is better than a bad deal’ is startling, and undermines recent hopes that a deal could be finalised soon,” said Hamish Muress, currency analyst at OFX.

Meanwhile, the British Chambers of Commerce (BCC) warned that the possibility of the UK leaving the EU with a trade deal was a big concern for firms.

“Many firms are hugely worried about a messy and disorderly outcome, and the potential impact on their ability to trade and grow. Others could be caught flat-footed. Both sides must make every effort to avoid this scenario,” said BCC director general Adam Marshall.

Mrs May’s statement followed a cool reception for her Chequers plan at a summit of EU leaders in Salzburg.

She said the two sides were still “a long way apart” on the post-Brexit economic relationship.

The two options being offered by the EU – for the UK to stay in the European Economic Area and customs union or a basic free trade agreement – were not acceptable, she said.



Source BBC News

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