Pound Trade As The Weakest On Michel Barnier And UK Manufacturing Numbers
Sterling has broadly weakened, trading under 1.29 versus dollar after Michel Barnier (EU chief Brexit negotiator) claimed that he “strongly opposed” to Theresa May’s Brexit deal. On the customs proposals, chief negotiator said its “not practical”. He added, “it is impossible to tell exactly where a product ends up, on the UK market or in the internal market.” And, “the British proposal would be an invitation to fraud if implemented.”
Barnier also told that “common rulebook” idea as outdated with modern world of trade. He explained: “the interest of Europeans is to preserve the integrity of the common market. That is our special strength and the reason why we are respected throughout the world, even in the United States.” He then proceeded: “we have a coherent market for goods, services, capital and people – our own ecosystem that has grown over decades. You cannot play with it by picking pieces. Therefore, the EU must prevent unfair competition if the United Kingdom has weaker legal requirements than we do. Otherwise we would discriminate and weaken our own companies.”
Another thing, that put pressure on Pound was the report, showing that UK manufacturing PMI dropped to its 2-year minimum of 52.8 in August and suggesting weakening in the sector.