LONDON (Reuters) - Sterling was slightly weaker on Wednesday as the euro rose and traders waited to see whether Britain will be able to clinch a post-Brexit trade deal with the European Union (E.U.) during this week’s negotiations.
Also on Wednesday, Chancellor Rishi Sunak will present the details of the Spending Review, which will coincide with the Office of Budget Responsibility releasing its latest projections for the British economy.
Most in the market expect a post-Brexit trade deal to be agreed, even if it is a bare bones one, with some talks continuing into the next year.
Meanwhile, E.U. banks will have to use platforms inside the E.U. to trade derivatives from January, the bloc’s securities watchdog said on Wednesday, a move that could cut off the City of London, the world’s biggest derivatives trading hub.
Britain’s finance ministry said on Tuesday that the government would spend more than 4 billion pounds ($5.3 billion) over the next three years to get the long-term unemployed and other job-seekers back to work after the pandemic.
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