– GBP down on MiFID headlines
– EU looks to squeeze UK finance industry post-Brexit
– Naive of markets to think otherwise
– However broad USD strength is day’s big story
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– Spot rates at time of writing: GBP/EUR: 1.1805, -0.07% | GBP/USD: 1.2983, -0.09%
– Indicative bank rates for transfers: GBP/EUR: 1.1493-1.1575 | GBP/USD: 1.2629-1.2719
– Indicative money transfer specialist rates: GBP/EUR 1.1650-1.1700 | GBP/USD: 1.2840-1.2866 >> Get a quote
The British Pound came under pressure against the Euro, Dollar and other major currencies in the wake of headlines showing the EU would seek to impose tougher financial regulations on the City of London in upcoming trade negotiations.
EU sources told the Bloomberg newswire that European financial regulators would look to toughen up an existing set of regulations – known as MiFID II – by overturning the concessions they made to the UK.
The move appears to be a clear attempt by the EU to weaken the dominance of the City of London – which is often the generalist term used to describe the UK’s broader financial sector – following Brexit.
“The removal could further complicate UK financial firmsâ€™ access, or ability, to do business in Europe,” says Kim Mundy, a foreign exchange strategist with CBA. “GBP/USD is trading back below 1.3000 as moves continue to be dominated by headlines on UKâ€‘EU trade negotiations.”
MiFID was implemented in November 2017 and represented a major shakeup in European financial markets by introducing a series of policies governing research spending, record keeping and trading in stocks, derivatives and commodities. The more stringent policies have been criticised for increasing the difficulty of d