Pound vs Euro forecast: Boris Johnson’s stance could weaken Sterling
The pound remains weak against the majority of major currencies due to political uncertainty and the lack of clarity surrounding Brexit. At present the UK is in Brexit limbo and we have no Prime Minister. Political and economic uncertainty are catalysts to a currency losing value.
Favourite to gain the role of Prime Minister, Boris Johnson has said he will be willing to take the UK out of the European Union if a deal cannot be reached.
He will attempt to use the threat of a no deal Brexit scenario as ammunition to get an improved deal from Brussels.
Johnson stated the following this week “We are getting ready to come out on 31st October. Come what may. Do or die.”
He has made it clear that he does not wish to go down the route of another extension.
Brussels has stated on several occasions that the deal on the table is the only deal on the table and there will be no renegotiation. This is something that is seemingly being ignored by British members of Parliament.
The general consensus amongst economists is the higher the probability of a no deal the weaker the Pound will become. This does not bode well for Sterling and should you have to sell the Pound short to medium term you may wish to take advantage of current rates.
Will UK GDP data cause Sterling exchange rates to drop
UK GDP figures are released later today and there is expected to be very little change. Year on Year figures are set to remain unchanged at 1.8% and it is a similar situation with month on month set to stay at 0.5%.
I believe the data could land below expectations which could cause Sterling weakness.
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