Brexit border issues drag the pound lower again

Caitlin Morrison
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Sterling Rates To Fluctuate During Brexit Negotiations
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The pound dropped against both the euro and the dollar again this morning, as issues surrounding the Irish border and its status post-Brexit continue to stir up uncertainty.

Sterling was down 0.53 per cent to $1.3372, and also dipped 0.53 per cent against the euro to hit €1.1307.

The pound had little chance of recovering after yesterday's slide, according to Connor Campbell, financial analyst at Spreadex. Sterling fell against the euro and dollar on Tuesday, after the DUP scuppered a potential step forward with Brexit talks.

"Sterling just can’t shake its latest bout of Brexit sickness, while the European markets have been infected by the bearish trading seen in the US and Asia," he said.

"With the DUP obstinate as ever, and Theresa May once again under fire for her bumbling, barely comprehensible approach to Brexit, the pound didn’t really stand a chance of recovering its recent losses this Wednesday."

IG analyst Josh Mahony said: "Sterling is suffering once yet another bout of selling this morning, as fading positivity is replaced by a market malaise over just how Theresa May can put together a deal which will satisfy both the EU, and devolved sections of the UK.

"While the UK-EU friction over divorce payments seemed to be the number one hurdle to overcome, we are now realising that the Irish border may be an arguably more complex bone of contention, with no obvious resolution. The failure to gain a majority at the polls has truly come back to bite Theresa May, with the DUP proving yet another key roadblock to progression."

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