Sumary of Pound euro exchange rate: Post-Brexit ‘tensions’ threaten ‘UK trade’ – GBP falls:
- “The British pound eventually gave up ground on Wednesday following an increase in tensions regarding post-Brexit UK-EU trade..
- “Despite the calmness of currency markets of late, sterling volatility crept higher as a result, and GBP/EUR fell under the €1.16 mark on Thursday morning.”.
- “The pound has been overlooking the UK-EU tensions of late, but the recent standoff about the Northern Ireland (NI) protocol ahead of the key G7 summit this week triggered a wave of sterling selling – dragging GBP pairs lower..
- “This could result in tariffs and quotas being imposed, which would harm UK trade and probably cause headwinds for the pound..
- “Eyes are on US President Joe Biden in case he weighs in and suggests a UK-US trade deal could be compromised, which would likely weaken the pound further….