The pound sterling and the u.s. dollar were little changed Wednesday morning. The developments on the front of a commercial sino-american and the Brexit remained at the centre of concerns.
The pair GBP/USD rose 0.2% to 1,2247 at 11: 00 am, after dropping 0.7% to a low of one month in the previous session.
The hope that an agreement on the Brexit is concluded that decreased further after the british government criticized the German chancellor Angela Merkel have made it impossible for any type of agreement on the Brexit.
According to Bloomberg, Merkel told the Prime minister Boris Johnson that Northern Ireland should remain an integral part of the customs union in any agreement, which, according to Johnson, has opened the way to “Brexit” without an agreement.
A report by the Institute for Fiscal Studies concluded Tuesday that the budget deficit could reach 4% of gross domestic product if the Uk left the European Union without an interim agreement.
The evolution of trade in sino-american also remained at the centre of concerns. The senior officials will meet Thursday for a new round of trade negotiations. Just a few days before the start of the meeting, the United States announced that they were part of a black list of eight chinese companies for their role in the repression alleged by the China ethnic Uighour in the western province of Xinjiang.
Tensions further increased after China announced that its broadcaster of State would suspend the broadcast of NBA games in response to the defence by the Commissioner Adam Silver’s tweet of the director-general of the Houston Rockets, Daryl Morey, who had expressed his support for pro-democracy protesters in Hong Kong.
“I am an American and some of these values are deeply rooted in the DNA of the NBA and include the freedom of expression of its employees,” said Silver at a press conference in Japan.