Tory Ex-Chancellor Warns Against No-deal Brexit

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No Deal BrexitThe former British Chancellor Phillip Hammond warned against a no-deal Brexit, ridiculing the idea that the UK would be better off in such a situation.

Hammond wrote an article that was published in "The Times" claiming that a no-deal Brexit would betray the British Voters.

"I want to deliver Brexit - and voted to do so three times. But ‘No Deal’ is a far cry from the highly optimistic vision presented by the Leave campaign - and there is no mandate for it," he posted on his Twitter account afterward.

Hammond is known for supporting leaving the European Union and for expressing clear opposition to the current British Prime Minister, Boris Johnson. Hammond recently renounced to his post as Chancellor of the Exchequer since he wasn't willing to support a no-deal Brexit, which is an acceptable outcome for Johnson.

The Negotiations with Brussels are currently stalled since the EU leadership doesn't consider necessary to renegotiate May's deal. However, Johnson's government is not happy with May's deal stance about the Irish Backstop Issue and hopes that Brussels drops out this plan. This situation Boosts the likelihood of a no-deal Brexit, an outcome that is strongly opposed by the majority of the British parliament, including the elites of the conservative party.

Hammond thinks that the British Government should reconsider its position about the Irish Backstop Issue, as it undermines the probability of reaching a deal.

"Pivoting to say the backstop has to go in it its entirety - a huge chunk of the withdrawal agreement just scrapped - is effectively a wrecking tactic," explained Hammond in an interview with the BBC.

It's also known that Hammond and other 20 senior Tory MPs sent a letter to the Prime Minister asking for this.

“Any deal has to be a compromise, and many commentators feel that you have set the bar so high that there is no realistic probability of a deal being done,” they stated in a letter.

When asked about forming a Unity government to repeal the no-deal Brexit he replied that he doesn't think that's the answer, highlighting that he trusts that the British parliament will be able to pass legislation to stop this outcome.

Inflation figure Beats Bank Of England target

Britain's inflation rose 2.1% in July, slightly higher than June's figure and over the Bank of England's 2% target. The pound fell 2.4% against a basket of major currencies last month, hitting its lowest level since late 2016, and many attribute this boost in inflationary levels to this fact, however, some consider that is too soon to assume that a weaker sterling is behind this.

This rise in inflation may put pressure on the Bank of England to consider a rate hike, however many analysts consider that this is not feasible and that the Central Bank will keep the cash rates steady.

The GBP/USD pair rallied right after this announcement, hitting the 1.2073 level, to end up coming back to the 1.2065 region. At 10:14 GMT the pair stood around the 1.2084 level.

Sara Patterson has a Master’s Degree in political science and enjoys analyzing both current events and the international markets to get a fuller perspective of the currency market. Before turning to financial writing, she taught English writing skills to high-school age students. Sara’s work has been published on various financial and Forex blogs.