Economy

UK firms struggle to hire with Brexit, record low jobless rate

UK firms struggle to hire with Brexit, record low jobless rate”

Mrs May wants to clarify her plans before an European Union leaders' summit in June and to seal a deal on Britain's new relationship with the European Union in October, less than six months before Brexit.

The GBP/USD is trading at the lowest level since August 31 previous year as the United Kingdom cabinet said it will meet in September to prepare plans for a no-deal Brexit scenario.

The pound fell on Monday after minister for worldwide trade Liam Fox said there was a 60 per cent chance the United Kingdom would leave the EU without a deal, putting the blame on "intransigence" from the European Commission.

The pound's weakness versus the euro "is a clear sign that markets are starting to focus on the pound-specific risks associated with a no-deal Brexit", said Viraj Patel, a currency strategist at ING Groep NV. Three-month sterling volatility rose to its highest since March.

Part of the hedging trade was being driven by companies.

The Pound US Dollar (GBP/USD) exchange rate fell below $1.29 for the first time since August 2017 during yesterday's session, with the pairing's losses being exacerbated by rising trade tensions between the US and China.

While Sterling continues its downward trajectory the Euro remains relatively stable, having been spared any fluctuations by a stall in new Eurozone data and a lack of compelling political developments.

His comments echoed those Bank of England Governor Mark Carney last week.

Last week, the Bank of England (BoE) raised interest rates above their crisis lows for the first time in almost a decade.

"Some are thinking in the market that the BoE raised in order to given them ammunition to cut rates in the face of a no- deal", said Neil Jones, head of hedge fund FX sales at Mizuho Bank.

The Euro (EUR) has remained relatively stable recently, leaving its exchange rates at the mercy of developments overseas, and the European Central Bank's (ECB) latest economic bulletin this morning served to highlight the Eurozone's economic trajectory.

Options markets supported the idea that there would be little relief in the coming months for sterling.

He believes that a no-deal Brexit is now more likely than an agreed withdrawal, putting the odds at "60-40".

There was a silver lining on Wednesday for equities, with Britain's export-heavy FTSE 100 equity index surging 0.8 percent.



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