British Prime Minister said that a Brexit response was some way off. Sterling was little moved and is back where it was at the start of the week.
On Wednesday, Johnson sent new Brexit proposals to the EU. The proposals received a cold reception in Brussels. Leaving the EU without a deal risks causing major disruption to trade, at least in the short term.
Should the EU reject Britain’s Brexit proposal, attention will turn to the “Benn bill”. This compels the government by Oct. 19 to seek an extension to Brexit until Jan. 31, 2020, if no deal is reached during an EU summit on Oct. 17 and 18. But British Prime Minister again told his Conservative Party on Wednesday that Britain would leave the EU on Oct. 31 with or without a deal.
Britain’s economy appears to have tipped into recession, according to a survey which showed the dominant services sector took an unexpectedly sharp downturn last month. Firms brace for the risk of a disruptive Brexit in just a few weeks’ time.
September’s IHS Markit/CIPS services Purchasing Managers’ Index (PMI) fell by more than any economist predicted. It was also the worst reading for service PMIs among major advanced economies in September.
Britain’s economy is also slowing due to global trade tensions. On Wednesday the United States imposed 10% tariffs on Airbus planes partly made in Britain. They also imposed 25% duties on whisky and cheese as punishment for EU aircraft subsidies.
The pound, however, managed a small rise and was last up 0.1% at $1.2315. Against the euro it was up 0.1% at 89.00 pence.Sterling had enjoyed a strong rally in late September as investors bet that lawmakers would be able to stop a no-deal exit.
START TRADINGForex – Britain waits for EU Brexit response
The market is largely sceptical that the EU will agree to Britain’s latest offer to avoid a no-deal Brexit on Oct. 31.
The Canadian dollar weakened to a one-month low against its U.S. counterpart on Thursday. Washington imposed new tariffs on European goods added to global growth fears. The Canadian dollar was last trading 0.1% lower at 1.3341 to the greenback, or 74.96 U.S. cents.
The dollar rebounded from a near one-month low versus the Japanese yen on Thursday. Against the yen, the dollar pulled away from early lows and was broadly steady at 107.12 yen.
Gold prices were little changed on Thursday, following a jump of more than 1% in the previous session. investors awaited more data with which to gauge U.S. economic health and that could influence further U.S. Fed action on interest rates. Spot gold was steady at $1,498.89 per ounce, as of 0758 GMT. US gold futures dipped 0.3% to $1,502.9 per ounce.
U.S. crude oil futures fell 1.5% to $51.86 a barrel, pressured by concerns about global economic growth, oil demand and signs of excess supply despite OPEC-led cuts.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money