EUR GBP Seeks a Bottom as Johnson’s Gets a Kick

The EURGBP exchange rate was looking to set a price low at the 0.8350 level after a second bounce there. The UK Prime Minister Boris Johnson is facing calls to resign after he admitted to attending a garden party at the height of the UK’s first lockdown.

The EUR to GBP rate was trading at 0.8345 with an eye on Friday’s GDP data.

Boris slated for rule-breaking at height of lockdown

The UK Prime Minister finally admitted to attending a garden party at Number 10 Downing Street at the height of the UK’s first lockdown.

The “bring your own booze” party is part of an enquiry, but the Scottish Conservative leader Douglas Ross called for Boris to step down, saying his position was “no longer tenable”.

Opposition leader Keir Starmer was scathing in his criticism during the Commons meeting today:

“His defense… that he didn’t realise he was at a party is so ridiculous that it’s actually offensive to the British public”.

“He’s finally been forced to admit what everyone knew, that when the whole country was locked down he was hosting boozy parties in Downing Street”.

Starmer also called on Boris to “do the right thing” and resign, but Johnson was defiant as Tories try to rally round their struggling leader.

Johnson’s fate now lies in the hands of civil servant Sue Gray, who is conducting an inquiry into the happenings at the party.

The pound sterling has been weighed by the news as markets hate uncertainty and the removal of Johson could put a spanner in the works of recent plans by the PM.

The UK will see the latest 3-month growth figures released on Friday and markets are expecting a 0.8% quarterly figure after last month came in at 0.9%. The economy has slowed after the Plan B restrictions introduced by Boris Johnson, but retail sales on Monday were propped up by the Christmas holiday season.

European commission looks for Switzerland’s ‘political commitment’

The European Union seems to be at odds with a member, every other week, and this time it’s Switzerland.

European Commission Vice President Maros Sefcovic was warning that the entire Brexit deal could collapse if the UK triggers the Northern Ireland clause.

Sefcovic said that triggering Article 16 would have “serious consequences” as both sides seek a compromise.

The Commission is also in negotiations with Switzerland after the country ditched a previous agreement in May. The Vice President said that the ball was now in the Swiss’ court.

“First of all, we needed a political commitment from the Swiss government that it is serious about talking to us” about issues such as state aid and social rules or a dispute mechanism”.

The EU and Switzerland are connected via a network of different deals and some of those are decades old, with some companies saying they are not fit for the modern business world.

The Brexit talks have stabilised again, but both sides will still have to come to an agreement.

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