Commenting on sterling’s reaction to Johnson ruling out another Brexit extension

Commenting on sterling’s reaction to Johnson ruling out another Brexit extension, Andy Scott, Associate Director at JCRA, said: “Sterling was slammed into reverse this morning, sliding around 1% versus both the US Dollar and the Euro after Boris Johnson announced the transition period will not be extended beyond 2020.

“By outlawing an extension, it leaves very little time in which to agree a comprehensive free trade agreement with the EU and means the clock is now ticking down to a firm cliff-edge next December. Sterling’s impressive gains following the exit poll and election result have now been completely wiped out as markets are reminded that Boris Johnson’s promise to leave the EU is something he intends to fulfil, possibly without negotiating an amicable future relationship.”