Pound’s bleak Brexit outlook and why tariffs are not shrinking trade deficit Aug 23, 2019 Pound’s bleak Brexit outlook and why tariffs are not shrinking trade deficit By Erik Norland, Senior Economist, CME Group Will pound test lows as Brexit looms? British pound has weakened considerably under Prime Minister Boris Johnson Declines are due to changing probabilities of Brexit outcome Pound could drop another 10-15% if there’s a ‘no-deal’ Brexit Will the pound fall below the record low of 1.05 versus the USD set in 1985? Watch video Why does the trade deficit keep expanding despite tariffs? Tariffs are missing the mark, not helping to narrow US trade deficit Markets are mitigating impact of tariffs by weakening currencies Chinese yuan has fallen sharply since first tariffs went into place 2018 Chinese imports not subject to tariffs are now actually cheaper in US Watch video SEE MORE ANNOUNCEMENTS
