Pound falls against dollar on August 9 amid no deal Brexit fears

Cornelia Mascio
Agosto 9, 2018

While most of the blame for the pound's tumble has been put squarely on fears of the United Kingdom crashing out of the European Union without a deal, analysts have been keen to point out that August has always been a hard month for the currency.

The pound has continued its downward slide amid fears of a "no deal" Brexit - nearing a one-year low before making a slight recovery.

The pound slipped to the lowest level against the euro in nearly nine months amid growing concern that the United Kingdom could end up leaving the European Union with no agreement for future economic ties.

Joshua Mahony, market analyst at IG, added: "Fears over a potential hard-Brexit have ramped up of late, with Liam Fox speculating that a no-deal looks more likely than a positive outcome from negotiations".

Bank of England Governor Mark Carney and the UK's International Trade Secretary, Liam Fox, have both highlighted the rising likelihood of a no-deal Brexit in recent weeks, warning that Britain could crash out of the European Union without any deal on its future trading relationship with the bloc.

He believes that a no-deal Brexit is now more likely than an agreed withdrawal, putting the odds at "60-40".

Last week, the Bank of England (BoE) raised interest rates above their crisis lows for the first time in almost a decade.

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