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Pound euro exchange rate at risk of being driven by ‘rumours’ as Brexit hits ‘crunch week’

“It may just be a technical bounce for sterling given the circa one percent decline suffered against numerous currency peers yesterday.

“However, as the Brexit clock ticks ever closer to critical deadlines, market participants may feel this exodus of Vote Leave veterans from Downing Street could suggest Mr Johnson is about to make compromises to secure a trade deal with the EU, although Mr Cummings has completely dismissed these rumours.

“Nevertheless, one can’t ignore the potential impact on Brexit negotiations given Britain’s chief EU negotiator, David Frost, considered resigning too.

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