Pound/Euro falls to two-year low

Sterling falls to €1.08

Pound/Euro falls to two-year low 1The Irish Times among others reports that Sterling was stuck on Wednesday this week at around its weakest levels since 2017, having matched a two-year low against the Euro as investors further priced in the probability of Britain leaving the European Union without a deal in place. Yesterday the pound fell to below €1.08 at one point yesterday afternoon.

Boris Johnson, who took over as prime minister two weeks ago, has said he would take Britain out of the EU on October 31st 2019, with or without a divorce agreement to smooth the transition with the bloc. Whether this is brinkmanship or not remains to be seen.

He said he is looking to negotiate a deal with the remaining 27 counties in EU, but he also demanded that Brussels show a willingness to change the deal it agreed with Teresa May before negotiations. The EU has, not unexpectedly, repeatedly said it will not reopen the negotiations.

Johnson’s insistence that Britain is boosting preparations to leave without a divorce agreement has spooked markets, and last week it sent the pound tumbling. This morning it is continuing to fall.

As at 11:00 this morning the pound had fallen another 0.45% to €1.0807. It eventually closed another 0.89% down on the day at €1.076

4 thoughts on “Pound/Euro falls to two-year low”

  1. Wondering if this is a correct quote.

    “The EU has, unexpectedly, repeatedly said it will not reopen the negotiations.”

    I don’t see anything unexpected in the EU’s statements as they have said for months (years?) that they will not reopen the withdrawal agreement and Johnson has insisted on the backstop (part of that agreement) being dropped before he will talk to the EU.

    P.S. 1 – 1:08 is the official course. I hate to think what they are offering at the airports.

    Reply

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