British Pound To Suffer In Coming Weeks?

British Pound To Suffer In Coming Weeks?

The British pound is suffering in the international exchange market. There are significant concerns over the newly appointed Boris Johnson. One of the major concerns is his rhetoric of forcing a no-deal Brexit should negotiations fail before the October deadline.

Major Concerns Over Brexit

In the recent weeks there has been more pressure building on the UK to find a solution to the Brexit problem.

Philip Rycroft, who was head of the Brexit department, has stated that that a no-deal scenario was fraught with risk. In addition, Northern Ireland police leaders have warned a no-deal scenario would help paramilitary groups in recruitment.

Boris Johnson has reiterated in his early speeches, that no-deal is still an option. While there are hopes that the EU will be able to offer a better deal than that presented to the UK government currently, the trading bloc has stated it will not renegotiate the deal.

To combat this, MPs are attempting to block the no-deal scenario through bills being presented to parliament.

Civil Servants And Businesses Not Helping

One of the confusing aspects of the Brexit fiasco is that civil servants who were employed to help with the transition, in the event of a no-deal scenario have been stood down. However, reports have suggested that they are on stand-by should they be needed.

Another problem for the government is that its own business advisors are refusing to agree to certain aspects of the border issue in Northern Ireland. The business leaders, mostly based in Northern Ireland, are worried that by agreeing to the current plans, they will be ratifying a no-deal scenario, something all leaders want to avoid.

The Impact On The Foreign Market

A result of the current political landscape, the sterling has struggled in the foreign markets. It has sunk to its lowest levels since 2017 against both the US dollar and the Euro.

While Brexit is a major concern, there are also worries that the British economy is deteriorating, which was not helped with the numerous job losses that were reported at Deutsche. According to early reports, Deutsche is slashing up to 18,000 jobs globally and many of these are in London and New York.