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Hello and welcome to our slippery coverage of the global economy, financial markets, the eurozone and businesses.
The pound is under pressure this morning while another Brexit crisis is seizing financial markets.
After a bloody sale yesterday, the pound sterling is still suffering this morning. It languished below $ 1.24 at $ 1.2389, its lowest point since early April 2017.
The pound against the US dollar in the last two years Photo: Refinitiv
Arjun Lakhanpal, MSTA, CFTe
(@ArjunKLakhanpal)Fears of an exit without agreement weighing on the pound. The pound plunged to its lowest level negotiated more than two years ago, briefly falling below 1.2400.
It is also fighting against the euro, falling to only 1.1056 euro for the first time since January.
The concern over a Brexit non-agreement has increased, after Boris Johnson and Jeremy Hunt pledged to give up support for Northern Ireland – which I'm not sure of. Europe has repeatedly rejected.
The announcement that Johnson could schedule the next Queen's speech to close Parliament before the October 31 Brexit deadline also worries investors.
The city's stated opinion was that it was unlikely that a Brexit would be negotiated without agreement and that an additional delay, possibly accompanied by a general election, was to be expected. The prospect that the next Prime Minister might break the foot on the no deal transaction accelerator is pushing traders to rethink.
Stephen Innes of Avant-garde markets the pound could easily suffer further losses:
While markets still underestimate a tough Brexit and a potentially accommodative Bank of England, the pound sterling will remain extremely vulnerable to a dynamic shift towards a "no deal" policy in Brussels before the autumn.
David Lowe, responsible for international trade in a law firm Gowling WLG, is also concerned:
"A proposal by Boris Johnson to remove the Irish safety net is likely to be rejected and not considered by the EU as a good reason. And then, the UK risks sinking into the unknown of a Brexit without agreement for Halloween. "
Neil Henderson
(@Endopolis)FINANCIAL TIME: Sterling plummets to two-year low with increasing risk of lack of agreement with Brexit #tomorrowspaperstayay pic.twitter.com/uF9A81Ui9J
Also coming today
The latest British inflation data released this morning show that the cost of living is steadily rising.
Economists predict that consumer prices rose 2.0% in June, as they did in May, and that they would meet the Bank of England target. If this is the case, it means that incomes are always rising faster than prices [ we learned yesterday that wages are rising at 3.6%].
Despite rising wages, British household incomes have been experiencing the slowest growth outside recessions since the records began in 1961, according to the Resolution Foundation.
We will also consult the latest official data on housing prices – likely to show a slowdown, led by London and the Southeast.
Markets may be under control, while concern over US-China trade talks weighs on equities.
L & # 39; s calendar
- 9:30: UK inflation data for June – CPI expected to remain unchanged at 2.0%
- 9:30: British data on house prices for May – national growth is expected to fall from 1.3% to 1.3%
- 1:30 pm Paris time: US Housing Starts and Building Permits Reports
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