Secretary of State for International Trade Liam Fox has told The Sunday Times no-deal Brexit is the most likely outcome for the UK. Fox said Michel Barnier, Brussels’ chief negotiator, had dismissed the UK’s proposals simply because “we have never done it before”.
These comments weakened Sterling further, but not all is bad news.
Despite pessimism over Brexit, UK biggest companies are more cheerful. More than half of the FTSE 350 company secretaries (55 per cent) expected Brexit will have a negative effect on the economy, according to the FT-ICSA Boardroom Bellwether bi-annual survey. This number has dropped from 69 per cent recorded a year ago.
Meanwhile, growth in the US labour market cooled in July as only 157,000 workers got jobs, which is below economists’ forecast. However, unemployment fell to 3.9 per cent. After the release, the Dollar Index, a basket of currencies weighted against the greenback, dropped 0.1 per cent.
In addition, the Dollar has recovered as Sino-US trade war concerns continued to mount following US President Donald Trump claims over the weekend. He suggested that Washington was still “winning” after Beijing threatened retaliatory tariffs on $60 billion’s worth of imports from the US.