Business Magazine

Brexit Rumours Buffets Sterling Exchange Rates

Posted on the 16 October 2017 by Forex News Shop @forexnewsshop

The pound had to navigate some tricky waters on Thursday following comments from the European chief negotiator. Michel Barnier’s comments saw the Pound tank against a host of currencies. Although the losses corrected fairly promptly, Sterling exchange rates found themselves at a month low.

What caused Sterling exchange rates to dip?

The pounds sell off and depreciation was triggered by comments from Michel Barnier who portrayed the troubled that negotiations with the UK

We’ve reached a state of deadlock, which is very disturbing. We are not asking the UK to make concessions.

Michel Barnier went further, saying that the UK’s relationship with the EU couldn’t be defined without progression.

Market interprets no deal

Following Barnier’s comments, Sterling exchange rates plummeted with the Pound losing against a host of currencies. The heaviest depreciation was seen against the JPY and USD. Many trade experts believe the losses were heavy due to the recent conversation about pre-emptive measures taken in case of a NO Deal Brexit outcome. In recent weeks there has been a lot of speculation about the UK Governments plan for a no deal with Theresa May setting out a plan in order for the movement to continue. These include lorry checks to be held in-land in order to not create queues at Dover and other ports.

Davis still remaining upbeat on Brexit talks

Although Barnier had spoken in a negative fashion about the negotiations so far, David Davis  the UK’s Brexit Secretary appeared more upbeat about their progress stating that he wanted to

Build on the spirit of co-operation we now have.

With the Brexit secretary highlighting the progress made on UK and EU Citizens rights, with Davis saying that he believed the talks had moved the two sides closer to a deal. He also confirmed that Theresa May would honor the UK’s financial obligation to the EU.

Sterling exchange rates tumbled following Barnier’s ‘Deadlock’ comments

The pound’s recent gains were brought briefly to a halt following the EU chief negotiator’s comments with Sterling exchange rates losing pace against a host of Currencies.

GBP/JPY was experienced heavy losses with the rate dropping from 148.75 to 147.54. The pair briefly losing around 0.7% in a few hours.

Sterling Exchange Rates GBP/JPY

The GBP/USD was briefly rattled by the comments, which saw the pair drop from 1.3237 to 1.3139. GBP/USD dropping roughly 0.5% in a few hours following the comments relating to a possible deadlock in Brexit negotiations.

Sterling Exchange Rates GBP/USD

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • ✔635.Arbories Memorial Sports Ground

    ✔635.Arbories Memorial Sports Ground

    Padiham 4-0 Litherland REMYCANorth West Counties FL - Premier DivisionSaturday 22nd September 2018 Padiham was originally a rural village lying by the River... Read more

    The 23 September 2018 by   Smidrophenia
  • Eco Park


    Saturday wasn't a busy day. We didn't have any birthday parties, Brandon didn't have work to do, and our household chores weren't very many. Read more

    The 23 September 2018 by   Sherwoods
  • Coheed and Cambria with Protest the Hero and Crown Lands

    Coheed Cambria with Protest Hero Crown Lands

    Coheed and Cambria rolled into Toronto with their progressive metal sound on Thursday night for the Unheavenly Tour with Protest the Hero and Crown Lands. It wa... Read more

    The 23 September 2018 by   Phjoshua
  • Lockheed Martin C-130 Hercules

    Lockheed Martin C-130 Hercules

    @ Nellis AFB, NV November 2007 Two service members are silhouetted against the late afternoon sky after watching the Aviation Nation airshow from their unique... Read more

    The 23 September 2018 by   Htam
  • 10 Attributes Of The Ideal New Venture Job Candidate

    Attributes Ideal Venture Candidate

    In a corporate environment, the focus of a job interview has long been demonstrating your match to the skills and experience outlined in the job description. Read more

    The 23 September 2018 by   Martin Zwilling
  • BREAKING: It’s ‘Inconclusive’! INEC Says No Winner In Osun Governorship Election

    The Independent National Electoral Commission (INEC) has declared Saturday’s Osun State governorship election “inconclusive”. Announcing the results on Sunday... Read more

    The 23 September 2018 by   Naijapary
  • Whelmed Over

    Whelmed Over

    I have to admit I feel overwhelmed by the task. You see, I spent twelve years living in a town that went from one small used bookstore to none. Read more

    The 23 September 2018 by   Steveawiggins