Tuesday, 7 December 2021

GBP weakens against USD as exchange rate tumbles

pounds 20LONDON: It comes amid report that pro-Remain Tory MPs have threatened to side with the Labour party in order to force amendments to the Brexit bill.

Meanwhile former Liberal Democrat leader Sir Vince Cable has stated that a coalition of Lords – including rebel Tory peers – will amend the bill should it make it through the House of Commons.

It comes after Priti Patel became the second member of the Cabinet to resign after it emerged she had held undisclosed meetings with Israeli officials whilst on holiday.

It then emerged that Foreign Secretary Boris Johnson and Environment Secretary Michael Gove jointly sent a secret letter to Theresa May outlining their demands for Brexit and expressing concern with the approach of certain areas of government.

It also emerged over the weekend that the European Union was preparing for the collapse of negotiations, stating that the UK needs to make a realistic offer regarding the “divorce bill” within the next two weeks or trade talks will have to be postponed; discussions were meant to begin in December.Meanwhile, the US dollar is enjoying support from strong odds of an interest rate hike from the Federal Reserve in December, with markets pricing in odds of 96.7 per cent of a rise to 1.50 per cent.

The Fed Funds futures market also suggests a 3.3 per cent chance that rates will have risen to 1.75 per cent – meaning the markets are 100 per cent convinced of monetary tightening on the 13th December.

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