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Pound falls again after release of Brexit White Paper

Monitoring Desk

LONDON: It is currently trading at £1.129 according to Bloomberg, following the release of the Brexit White Paper.

The 104-page document has highlighted the relationship between the UK and the EU after Brexit that is currently being proposed.

The White Paper has outlined four key chapters: economic partnerships, security, co-operation and institutional arrangements

“While it started with a bang (exit Boris) it looks set to end with a whimper, and not just because England’s World Cup dreams have ended.

“With no notable UK data to contend with, demand for the pound has been driven by Brexit speculation.

“With the Government’s hotly-anticipated Brexit whitepaper coming under fire, the GBP/EUR exchange rate is currently on course to end the week down slightly from its opening levels at €1.131.

“That being said, today’s speech from a prominent Bank of England (BoE) official could spark some last minute movement before the weekend.”

The White Paper has outlined four key chapters: economic partnerships, security, co-operation and institutional arrangements.

Dynamic currency conversion – Some retailers may ask if you want to be billed in sterling, which may seem like a good option, but you will usually be charged a high exchange rate for the privilege

Regarding a free trade deal, the deal proposed is similar to a single market with it stating a proposal of “the establishment of a free trade area for goods”.

It could mean agreeing to EU regulations when trading.

Free movement of people could also end with another White Paper regarding immigration to be released at a later date.

It doesn’t make clear what the future decision regarding the European Court of Justice (CJEU) would be when it came to abiding by the same regulations as the EU.

The White Paper led to the resignation of Boris Johnson, David Davis and other MPs this week.

Pound euro exchange rate: Donald Trump commented it was “not the Brexit” the UK voted for

Theresa May replaced Boris who was Foreign Secretary with Jeremy Hunt, while Dominic Raab took over from Davis as Brexit Secretary.

The pound has also suffered following the latest from Donald Trump who stated that the UK could be affected in a “negative way” when having a trade deal with the US, as told to the Sun.

He also stated that it was “not the Brexit” that the UK voted for and that Boris Johnson would make a great Prime Minister.

Mr Trump said: “I think he is a great representative for your country.

“I think he’s got what it takes and I think he has got the right attitude to be a great prime minister.”

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