US Markets

Sterling slips vs euro after scant progress in Brexit talks

Credit: REUTERS/Sukree Sukplang

Sterling slipped against the euro on Monday on lingering concerns over Brexit, after British and European Union negotiators said on Friday they had made no real progress in their latest talks on relations after Dec. 31.

By Joice Alves

LONDON, Aug 24 (Reuters) - Sterling slipped against the euro on Monday on lingering concerns over Brexit, after British and European Union negotiators said on Friday they had made no real progress in their latest talks on relations after Dec. 31.

Against the euro, the pound was down 0.2% at 90.28 pence EURGBP=D3.

Sterling was slightly up against the U.S. dollar, having fallen more than 1% on Friday, when British and EU chief negotiators blamed each other for the Brexit stalemate as time ticks down to an end-of-year deadline.

The pound was trading at $1.3103 up 0.1% at 0917 GMT, after touching a one-week low of $1.3059 on Friday GBP=D3.

Given the lack of clarity over Britain's future relations with its biggest trading partner, investors will turn their focus this week to the Bank of England and any signs it may be willing to cut interest rates below zero, wrote ING analysts.

"The collapse of Brexit negotiations has triggered a relatively contained correction in GBP," ING wrote.

"And focus this week will turn to BoE speakers that may shed some light around a possible move into negative rates".

Also on Friday came news that Britain's public debt rose above 2 trillion pounds ($2.65 trillion) for the first time in July as the government ramped up public spending to cope with the coronavirus pandemic and tax revenues fell.

Britain's official budget forecasters raised their estimate for the size of the country's public debt pile at the end of the current financial year, after data showed that it had passed 100% of annual economic output for the first time.

(Reporting by Joice Alves; Editing by Hugh Lawson)

((Joice.Alves@thomsonreuters.com; +442075422345; Reuters Messaging: joice.alves.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More