Versus Euro and Dollar

Pound Sterling could come under pressure sooner than expected

The British Pound was coming under pressure against the Euro, the US Dollar and other major currencies on Thursday, September 19. A potential reason behind the softness could be that the currency is now facing a new and unexpected pressure-point in the form of a new September 30 Brexit deadline.

Media are reporting European countries want a written plan submitted by the UK by end-September, if the UK is to get a revised Brexit deal. The plan appears to have been hatched by President Macron of France and Antti Rinne, the Prime Minister of Finland, after a meeting in Paris Wednesday.

Finland are current holders of the Presidency of the Council of the EU, and the move appears to be a clear attempt to flush out Prime Minister Boris Johnson's plans ahead of the European Council meeting scheduled for October 17.

Prime Minister Boris Johnson could find himself disadvantaged, as once official proposals are submitted we are almost certain they will be shot down by EU officials looking to push back against the UK's position ahead of the October European Council meeting in order to claw back concessions.

In short, this raises the chance of a 'no deal' Brexit in our opinion as Johnson has very little ground to give owing to his avowed 'red lines', which draws questions on current levels in Sterling.

Source: poundsterlinglive.com


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