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Theresa May’s Comments Sink The Pound

• Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
• August 28, 2018
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Growing concerns about a “no-deal” Brexit pushed the pound to a near one-year low against the euro today.

Mainly we have seen this drop as Prime Minister Theresa May has said that failing to secure a deal with the European Union before Britain leaves the bloc next year “wouldn’t be the end of the world”.

May’s comment, made to reporters as she headed to Africa to boost Britain’s trade ties ahead of Brexit in March 2019, came after her Chancellor Philip Hammond said last week that a no-deal departure from the EU would damage public finances.

She repeated comments from the head of the World Trade Organisation (WTO) that Britain leaving the EU without a deal “would not be a walk in the park” but that “it would not be the end of the world”, Sky said.

However, in her comments to reporters on her way to Africa, May repeated her warning that a no-deal Brexit was better than leaving with a bad deal.

“I think it’s absolutely that the government is preparing for no deal because we don’t know what the outcome is going to be,” she said.

There is no key UK economic data this week that could help the pound either. Seems like another week ahead where the pound will continue to be driven by Brexit comments.