The Pound remains under pressure, despite a modest recovery against other major currencies during early Wednesday trading. On Tuesday Sterling touched its lowest in more than 2 years, as the probability of a no-deal Brexit continued to increase.
The rhetoric, on both the EU and UK side, indicates an unwillingness to shift from their positions; the UK demands the scrapping of the Irish back stop arrangement, while the EU refuses to even re-open the negotiations on the agreement, established with the previous British government. The Brexit issue is now the great determining factor in the performance of British assets, the Pound in particular. Therefore, the risk ahead is very much to the downside, because it is unlikely that a smooth solution will be found in the short term.
Photo by Frederic Koberl.
