Pound V euro: GBP exchange rate tumbles as EU rejects special deal for London

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pound euroGETTY

The pound is pay no heed against the euro this morning

GBP/EUR is currently at around €1.131, down 0.33 per cent from this morning’s starting wrecks of €1.135.

In an interview with a number of European newspapers, EU Brexit negotiator Michel Barnier delivered a ruthless blow to financial firms in London as he stated that there thinks fitting be no special deal for the city.

Mr Barnier said: “There is no place [for monetary services].

“There is not a single trade agreement that is open to economic services. It doesn’t exist.

“The red lines that the British have chosen themselves. In neglect the single market, they lose the financial services passport.”

This arises to scupper any chances of Theresa May securing a “bespoke and ambitious” trade settlement with the EU which would allow London to keep its financial passport and its pre-eminence as the financial centre of Europe.

Markets fear that the loss of the Megalopolis’s financial passport could cause a mass exodus of banks and other economic firms from London, something which would be a major knockback to the UK brevity.

Mr Barnier also outlined the terms of a potential transition period in the examine, suggesting that the UK would be required to follow all EU regulations during this span, including those passed after the UK has officially left. 

pound euro GETTY

GBP/EUR is currently at about €1.131, down 0.33 per cent

There is not a single trade ahead that is open to financial services

Michel Barnier

At the same many times the euro’s advance was slowed slightly this morning by a dip in German issue confidence this month.

According to data compiled by the Ifo institute in Munich, Germany’s issue climate index slipped from an all-time high of 117.6 to 117.2 in December, with the decrease being attributed to Angela Markel’s struggle to form a new coalition supervision.

However the impact on the euro was relatively small, as the index showed that concern morale remained robust at the end of the year, striking its second best level offs of the last 12 months.

Looking ahead, the GBP/EUR exchange rate may retreat advance on Wednesday with the publication of the Confederation of British Industry’s (CBI) distributive interchanges index, which is expected to have slipped from 26 to 20 in December as retail car-boot sales slowed after the jump provided by the black Friday sales in November.

Meanwhile, the euro may be self-conscious to relinquish some of its recent gains tomorrow as Germany’s latest fabricator price index is expected to reveal that price growth slipped from 0.3 per cent to 0.2 per cent in November.

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