The Cable plummeted on Wednesday, all the way to the lowest levels since the end of and bulls are moving in as the US dollar rallies to new daily highs as US yields soar on Fed narrative. These included rising natural gas prices and petrol shortages in Britain due to Brexit Supply chain constraints as well as a global equity selloff on Tuesday.
A post-Brexit lack of lorry drivers has spread turmoil through British supply chains in everything from food to fuel, and the concern for emergency services is a critical point, particularly given the Delta variant crisis. Supply chain restraints deepened by Brexit which means that UK consumers are facing rising food and energy bills while the Covid-19 support measures are being unwound.
”Labour shortages and supply chains disruptions are currently common across the globe,” investment analysts at Rabobank said. ”However, it is likely that Brexit is worsening these issues for the UK with price pressures also likely to be enhanced by extra regulations and paperwork that are now necessary on many goods traded between the UK and the EU. This may be boosting the weakness of the pound.”
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