Oliver Mangan: Weak sterling signals cold winds blow for prospects of the Brexit ‘sunlit uplands’

Overall, the UK’s departure from the EU and its customs union and single market is viewed by many as lowering the potential growth rate of the country's economy over the medium term, via negative impacts on investment and trade. 

A quiet Piccadilly Circus in London last week after Prime Minister Boris Johnson ordered a new national lockdown for England. 

The EU-UK Brexit trade deal that was finally agreed on Christmas Eve has had little impact on sterling. Against the euro it has traded in a range between 88.5 pence and 93 pence since last May and has been confined to an even narrower 89 pence to 91 pence corridor since the deal was announced. One reason for this is that an agreement was widely expected by the markets.

Furthermore, it is a very limited or "skinny" trade deal and does not include services, in particular financial services, and is far inferior to the EU single market.