LONDON, Nov 10 (Businesshala) – Sterling hit a low on Wednesday as Britain and the European Union looked far from finding a post-Brexit trade deal on Northern Ireland, while Bank of England interest rate bets .
Britain left the European Union last year, but has since stopped implementing some border checks between its province of Northern Ireland and EU member Ireland that the bloc says London has been through in their divorce deal. bound under.
Sterling was under renewed pressure after Irish government ministers met to dust off contingency plans in case it triggered major trade disruptions between Britain and the EU.
Ireland said the British government was prepared to impose emergency unilateral provisions, a move that would worsen relations with Dublin, the European Union and the United States.
“Downside risks to the pound could emerge in the coming days as it appears the UK will unilaterally suspend parts of the Northern Ireland Protocol,” analysts at ING said.
Markets were also watching for “new data to weigh in on the timing of the first BOE rise since last week’s surprising catch,” ING said.
In its November policy meeting, the BoE left its key interest rate unchanged at 0.1%, indicating earlier that it may raise it. Markets are now pricing in the December interest rate hike, but uncertainty remains high. ,
Sterling fell 0.1% to $1.3534 against the dollar by 0.935 GMT, and was not far from the past five-week lows following the BoE’s policy meeting.
Versus the euro, the pound flattened at 85.52 pence, after falling on Friday to its lowest level since 1 October.
Investors are waiting for US consumer price index data for October to be released later in the day as global inflation readings remain under close scrutiny for evidence of whether rising prices will push policy makers at the Federal Reserve and elsewhere in their wake. encourages to adjust monetary policies.