The pound is dipping back towards $1.27, down 0.2% today, as investors analyse these warnings from Moody’s and S&P and wait for developments in Westminster.
Joshua Mahony, market analyst at IG, says the drop in business confidence, and the slowdown in household spending, are worrying the City:
This decline in economic indicators may have been a long time coming, yet with a weakened political mandate and Brexit negotiations about to start, it is likely that we will see the UK continue to struggle.
The fallout from the UK election continues and will remain key to expectations for the pound.
Britain’s businesses are “totally unprepared” for the drop in migration after Brexit, according to a new report from the Resolution Foundation today.
The think tank polled more than 500 UK businesses who employ EU workers, and found that 17% expect no change to the current system of freedom of movement for EU/EEA nationals to the UK.
Another 30% believe this system will be maintained for anyone from the EU who arrives in Britain with a job offer.
