Pound weakens against the euro ahead of eighth round of Brexit negotiations
Tuesday, 08 September 2020
The pound sterling continues to suffer from tensions over the negotiations on a post-Brexit trade agreement between the British and Europeans.
At around 08:50 GMT (10:50 Belgian time), the pound lost 0.43% against the dollar at $1.3109 and 0.39% against the euro at 90.11 pence to the euro. The day before, it had lost 0.85% and 0.68% against the two currencies.
No currency focuses more attention than the pound in the foreign exchange market, as negotiations between the United Kingdom and the European Union resume Tuesday, commented Naeem Aslam, analyst for Avatrade.
The dialogue between the two sides has been tense over the last few days, putting pressure on the British currency, whose course follows the evolution of forecasts on the chances of a trade agreement.
“We need to see more realism from the EU about our status as an independent country,” British negotiator David Frost on Monday evening in a statement, according to which the negotiators “can no longer afford to go over well-trodden ground” after six months of dialogue.
If a compromise is not reached “in the very limited time we have left then we will be trading on terms like those the EU has with Australia,” Frost said, warning that the UK was “ramping up our preparations for the end of the year.”
This would mean tariffs on many products, potentially very costly for many sectors.