Pound Drops As Hopes For Brexit Deal Fade

Pound Drops As Hopes For Brexit Deal Fade

XTB  | Oct 08, 2019 10:25

There’s been some selling seen in the pound in recent trade after the latest reports have poured cold water on the hopes of the UK and EU reaching a new Brexit agreement before month end. Laura Kuenssberg has quoted a no 10 source on Twitter that talks in Brussels are “close to breaking down” with the political editor for the BBC stating that it feels like any chance of a deal this month just died.

Given the lukewarm reaction to the government’s proposals last week this shouldn’t come as too much of a surprise, and now it seems increasingly likely that we get a general election almost solely focused on Brexit before the year is out.

The pound is trading lower against all its peers on the day and is back near its lowest level of the month against the US dollar, trading around 1.2250 last.

LSE shares slide after takeover bid dropped

The worst performing blue-chip in London this morning is the London Stock Exchange Group PLC (LON:LSE) with shares falling by as much as 6% after Hong Kong Exchange and Clearing Ltd (HK:0388) announced it would drop its £32B takeover offer. Shares in LSE have surged higher in recent months as speculation mounted that a takeover was on the cards, but given the current political disruption in Hong Kong it always seemed at least a tad optimistic to think this would go through without some serious resistance. There’s been a clear trend of consolidation amongst the world’s largest trading exchanges in recent years and while this latest attempt has come up short, it would not be too surprising for the LSE to be subject to further takeover interest going forward - especially if the pound remains at the current depressed levels that make the valuation more attractive to foreign investors.


Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.