All the day’s economic and financial news, as America finalises tariffs on $16bn of Chinese imports, and sterling weakens
- Latest: The pound is sliding
- Noon update: Sterling falls to €1.11, and $1.286
- US: Tariffs on $16bn of Chinese goods begin in two weeks
- Move means $50bn of Chinese imports will face levies
- But… Chinese exports rose 12% in July
- Weak yuan may be helping
Sterling is being hit by fears of a ‘no-deal Brexit’, says Lukman Otunuga, research analyst at FXTM.
Sterling was pounded by the Dollar and most of its major counterparts on Wednesday as fears heightened over the UK exiting the European Union without a trade deal in place.
Concerns of a potential hard Brexit scenario have haunted investor attraction towards the Pound and have left the currency vulnerable to downside shocks.
That’s an 11 month low for the pound now versus the dollar. GBPUSD sas lost 10% in the past four months: pic.twitter.com/qyoqUb9SVi
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Economics lecturer Daniel McLaughlin says the slide in the pound is bad news for UK consumers:
Sterling trading below $1.29 having been above $1.43 in April, with the euro back above 90 pence. A weaker currency is negative; the 15% post #Brexit fall in trade weighted terms hurt UK consumers more than it benefitted exports.