The GBP EUR exchange rate has pulled back from the 1.2000 level as Prime Minister Boris Johnson under pressure for attending a garden party during last year’s restrictions. There are calls from opposition ministers for the PM to resign, and also from the Scottish Conservative leader Douglas Ross. Political instability is the latest obstacle for the pound sterling at a big resistance level.
The GBP to EUR was trading at 1.1980 after moving above the 2020 highs on Monday on better-than-expected retail sales.
What’s in the Boris Johnson ‘living with covid plan?
Scottish Conservative leader Douglas Ross has asked for the resignation of Boris Johnson over the Downing Street party row.
Mr Ross claimed the prime minister’s position was “no longer tenable” following the admission that Mr Johnson attended a “bring your own booze” drinks event at Number 10 at the height of the UK’s first lockdown.
“I don’t want to be in this position, but I am in this position now, where I don’t think he can continue as leader of the Conservatives,” Mr Ross said.
The Commons chamber was packed as Johnson finally broke his silence on the latest claims of rule-breaking. Rishi Sunak also made a statement after being a notable absentee from Westminster.
The chancellor is seen as a potential successor to the Tory leadership and tweeted on Wednesday: “Excited to be in Ilfracombe this morning with Selaine Saxby.”
“The PM was right to apologise and I support his request for patience while Sue Gray carries out her inquiry.”
The pound sterling is suffering due to the uncertainty surrounding the Prime Minister’s fate.
Enterprise Ireland sees ‘a lot of optimism’ in UK investment
The chief of Enterprise Ireland has said there is now a lot of optimism surrounding business in the UK.
The “forecasts of doom” over the UK’s exit from the European Union have “lifted strongly,” and there is now “a lot of optimism” among Irish exporters.
Leo Clancy was speaking after a report was published showing that affiliate companies created a net 11,911 jobs in 2021- the highest annual increase.
“The UK is going to continue to be a key market for Ireland,” he told the Irish Times.
“There is a lot of business to be done there with the levelling up agenda, with a lot of the economic bounce they are seeing as they roll out their stimulus programmes,” he added.
“The picture is much, much brighter versus where we were in 2017 and 2018 when there was vast uncertainty about things like trade replacement, and new global trade deals that would displace Ireland completely.”
“Some of those forecasts of doom have certainly lifted strongly,” Clancy said, “People have worked out what Brexit looks like”.
The pound sterling versus the euro has big data this week in the form of the 3-month GDP for the UK into November. Analysts expect a 0.8% quarterly figure, down from 0.9% last month.
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