LONDON (Reuters) – Sterling extended Tuesday’s losses on Tuesday, hitting a 20-day low against the euro, the continuing confusion over the government’s plans to facilitate this moment of your cube, in the worst COVID-19, the number of deaths across Europe, and revived brexit risks-all weighed on the pound.
FILE PHOTO: Pound banknotes are seen in this illustration jobs January 6, 2020. REUTERS/Dado Ruvic/Illustration
Great britain has extended its job-retention system, in which the government pays 80 per cent of furloughed workers ‘ wages, and by another four months, until the end of the month of October.
The announcement did little to move the book, which was the worst-performing currencies G10 this month, held down by worries about the government’s handling of the crisis.
The official data published on Tuesday showed Britain without the death of COVID-19, topped 38,000 at the beginning of May, with the location in Italy as the most affected country in Europe. The Prime Minister is Boris Johnson’s plans for the easing of the lockdown have, between the time the leg has been widely criticised as uncertain.
Rabobank’s head of strategy FX, Jane Foley, said that international investors were likely deterred by the lack of clarity and the government of the slowness to realize COVID-19 for testing and provide protective equipment for health personnel.
“To the extent that we have a current account deficit in the united KINGDOM, I think we should always consider how, in the united KINGDOM, it appears, from the point of view of a foreign investor,” she said.
“From a political point of view, the united KINGDOM, it has not really been something very positive.”
In the United Kingdom, who has been racking up new debt at a furious pace): “it is because of the issue of 180 billion pounds of debt between May and July, more than expected for the entire fiscal year.
The country’s debt mountain of more than 2.5 trillion dollars and its public sector net debt could reach 14% of gross domestic product this year, the largest deficit in the year since the second World War.
The pound extended Monday’s losses against both the dollar and the euro. Relative to the dollar-it was last at $1.2314, down 0.2% from New York’s close.
Against a strengthening of the euro, the british pound has fallen to its lowest since April 22, and the last one down around 0.7% in the 88.228 pence.
(Graphic: Sterling extends losses vs euro here)
Johnson said the government of censorship boards at the time, in a televised speech on Sunday. 51-page document published on Monday, detailed in the plan, followed by a series of sector-by-sector-documents-for-the employers and the workers.
But the new measures have been widely criticized for having left, it is difficult to know whether the Britons must return to work.
Adding to the confusion, the leaders of the devolved administrations in Scotland, Wales and Northern Ireland, indicated that they do not share Johnson’s approach and approved its new core message “be alert”, instead of sticking to the previous “stay-at-home” as a slogan.
The market has turned increasingly to short the pound over the past 10 weeks, as the economic impact of the corona virus pandemic — likely-to-be-the-worst of the recession in 300 years, it is compounded by the risk of great Britain will be the end of a post-brexit the transition period on Dec. 31 without an agreement with the European Union.
Commerzbank’s FX strategist, Thu Lan Nguyen said, ” the government in its struggle to become familiar with the corona virus pandemic does not bode well for his handling of the trade negotiations with the EU, and has advised clients to be cautious on the pound sterling.
Britain and the EU have started in their tool provided for in the penultimate round of trade talks via teleconference on Monday, after having made little progress on one of the main sticking points.
Rabobank’s Foley says investors are becoming increasingly alert to the approach of risk, it is that great Britain fail to reach a post-brexit trade with the EU, could be another reason why the pound is exchanging at levels largely unseen since the end of 2016.
“It’s got to be a very significant risk, that is, on the top-of-the-worst recession in the last three centuries, you’re going to have confusion potentially to the border (in January),” she said.
“The government of the united KINGDOM is desperately in need of a few good titles.”
Reporting by Elizabeth Howcroft, Editing by Catherine Evans