According to Boris Johnson, the British pound has depreciated sharply about the existing option of a no-deal Brexit. The UK Prime Minister said the UK would be ready to end trade talks with the EU if necessary.
The UK government is reportedly planning a new bill to repeal important parts of the take-back agreement with the European Union. London would therefore place a bomb on the ongoing negotiations for a new trade agreement.
The pound lost almost 1 percent against the dollar on Monday afternoon. This is the pound’s biggest fall since June this year. Experts believe the pound could lose value in the near future. You speak of the beginning of a “painful correction”.
The UK left the EU earlier this year. London and Brussels are now trying to reach a trade agreement. An agreement must be reached before the end of the year, because then the transition period that began after Brexit will expire.
Top European officials have recently shown repeatedly that negotiations are slow. For his part, the British negotiator warned that Brussels should not expect his country to compromise on what it sees as breaking points.