Pound plummets as PM Johnson’s harsh trade remarks stoke hard Brexit fear

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Pound plummets as PM Johnson’s harsh trade remarks stoke hard Brexit fear

On Monday, the 3rd of February 2020, the British currency fell by as much as 1.5 per cent after UK PM Boris Johnson, who was sworn to take the office on mid-December last year, had made some harsh trade remarks that entirely had controverted the views of the EU Commission, fuelling up frets on whether British Tory-led Government could rubber stamp a raft of decipherable trade deals with other EU nations before end-2020.

In point of fact, the mercury heaved higher over the EU-UK trade fronts following EU Commission’s Monday’s (February 3rd) remark that the United Kingdom would have to play by their rules unless PM Johnson could seal trade deals with other EU nations, while rekindling the investors’ worries further, PM Johnson was quoted saying as a repercussion that the United Kingdom would not be chartered by the crippling legislations of EU Commission, instead it would enjoy its hard-earned economic sovereignty.

Meanwhile, addressing to a calamitous outlook ahead for the Pound Sterling, a Chief Currency strategist at RBC Capital Markets in London, Adam Cole said on Monday’s (February 3rd) market wrap up, “Sterling appears to be coming off on the not-very-encouraging signs from the two sides at the start of the negotiations.

They are positioning themselves at two extremes. ” Citing statistics, on Monday’s (February 3rd) market closure, the British currency ended up the day more than 1.5 per cent lower against its American counterpart to 1.2993, remarking the Pound Sterling’s largest intra-day plunge against a USD greenback in more than one month and a half. Besides, against the euro, the British currency shed 1.1 per cent to 84.97 pence.