The Pound is down, almost 0.4% against the U.S. dollar. Sterling weakness is justified by the increasing likelihood of a no deal Brexit. Both candidates to be the next UK Prime Minister voiced their willingness to, if necessary, break away from the EU without a deal, should there be no agreement between the two parts.
Photo by Kevin Grieve.
At the same time, sources in Brussels alluded to increased toughness between the negotiating teams in the ongoing talks. In this scenario, there may be more downside risk ahead for the Pound.
