Brexit markets: Sterling falls again, weighs on Irish shares
Sterling continued to fall against the dollar and the euro after prime minister Boris Johnson brought back the prospect of a hard Brexit at the end of 2020. Following sharp falls this week, Irish shares were mixed in the latest session.
Many Irish shares exposed to earnings in Britain and a weak sterling had first climbed following Mr Johnson’s landslide victory and then fell back as he unveiled plans to legislate against extending the trade talks with the EU beyond the end of next year.
“Johnson’s plans highly increase the chances that the UK stumbles out of the EU without a trade agreement given the short timeline for official negotiations,” Scotiabank analysts said.
Investment bank JP Morgan sees an “uncomfortably high” 25% chance of a no-deal Brexit.
The pound tumbled 0.5% to $1.307, after falling 1.5% earlier this week, taking losses over the last two days to nearly 2% for its biggest losing streak since February 2018.
