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British Pound Falls After May’s Brexit Statement

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LAHORE MIRROR (Monitoring Desk)– 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.

The sharp fall put it on track for its biggest daily drop against the dollar so far this year.

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.

Business bodies reacted with alarm to the latest development.

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.

SOURCE: BBC NEWS