RationalFX : Sterling fell to five week lows against the euro on Thursday, as Britain confirmed a hard stance on trade talks with the European Union……..
Sterling fell to five week lows against the euro on Thursday, as Britain confirmed a hard stance on trade talks with the European Union. Reports are also suggesting that the new Finance Minister may not spend as much as expected, which has caused the pound to weaken further.
The new Finance Minister, Rishi Sunak, has been told by treasury officials he cannot simultaneously raise public spending as fast as Prime Minister Boris Johnson wants. Consequently Sunak could postpone loosening fiscal policy, which has put pressure on the pound. The possibility of more spending was the main reason the pound strengthened in recent weeks, despite concern that Britain may not agree a trade deal with the EU by the end of this year.
Source : ETFWorld.co.uk