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Brexit!

• Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
• October 24, 2018
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The pound fell to a three-week this morning before British Prime Minister Theresa May meets with Conservative Party lawmakers, some of whom have discussed toppling her in anger at her Brexit negotiations.

May is seeking to win over lawmakers in her party who oppose her approach to Brexit negotiations, stuck at an impasse just over five months before the United Kingdom leaves the European Union.

The prospect of a leadership challenge and of politics scuppering an agreement with the EU has weakened the currency in recent days.

Sterling briefly gained half a percent against the dollar and euro on Tuesday after a media report that the EU could offer May a UK-wide customs union to clinch a Brexit deal.

A disagreement on a fall-back plan for the border between Northern Ireland and Ireland is a key sticking point.

The British newspaper The Times today reported that a long-running transition phase could be rolled over annually if needed – effectively leaving the UK in an open-ended Norway-style relationship with the EU.

British banks approved the fewest mortgages for house purchase since March last month and demand to refinance home loans also fell following the Bank of England’s interest rate rise in August, industry data showed earlier this morning.