GBP V USD: Currency stable as Cabinet makes show of Brexit unity
GETTY - STOCK The pound was trading in a narrow range against USD at the start of this week
Sterling is currently at $1.299 against the US dollar having fluctuated at the end of last week. In a joint statement Chancellor Philip Hammond and Trade Secretary Liam Fox wrote that a post-Brexit transitional deal should be sought with the EU in order to help business adjust to the loss of the single market.
The statement follows months of rumours of a possible split in Mrs May’s cabinet, with Mr Hammond and Dr Fox seen to be on opposing sides of the Brexit debate. As it stands, the Chancellor appears to be seeking a softer approach to Brexit, while the Trade Secretary is pushing for a hard exit from the EU. The article stressed, however, that while a transitional deal would be sought, it would not stop the UK from making a clean break from the EU.
Brexit transition phase: Cabinet splits three ways Thu, August 10, 2017 Who is pushing for the most gradual departure possible from the EU? And who favours a cleaner break? Play slideshow AFP/Getty Images 1 of 15 HARD BREXIT: Andrea Leadsom
We are both clear that during this period the UK will be outside the single market Chancellor Philip Hammond and Trade Secretary Liam Fox statement
It was stated: “We are both clear that during this period the UK will be outside the single market and outside the customs union and will be a 'third-country' not party to EU treaties.” Meanwhile, the US dollar remains under pressure at the start of this week’s session following some weak inflation figures on Friday.
According to the US Labour Department, US inflation rose from 1.6 per cent to 1.7 per cent in July, however this was short of market estimates of 1.8 per cent and well below the Federal Reserve’s target range of 2.0 per cent. Investors therefore saw this as yet another sign that the Federal Reserve’s plans to hikes rates for a third time later this year may be hampered, with market odds of a final adjustment taking place by the end of 2017 falling below 40%.
GETTY Philip Hammond and Liam Fox wrote a post-Brexit transitional deal should be sought with EU