The pound euro exchange rates struggles today follow another warning about the consequences of a bad Brexit deal and comes despite news of a UK government borrowing surplus.
NHS Providers have warned that there could be a shortage of medicines if the UK crashes out of the EU with no deal.
A leaked email to the head of NHS England has revealed that NHS managers are also concerned about an increased risk of European pandemics, a point that was raised last week by the British Medical Association (BMA).
Outlining the problems that a disruptive Brexit deal could cause to UK health services, Nuffield Trust Policy Analyst Mark Dayan said: “There’s been talk of stockpiling.
“There’s been talk in some cases of chartered flights to bring over supplies that maybe don’t have such a long shelf-life.
“Although that’s drastic action, it’s probably quite justified.”
Not all of today’s Brexit news has been damaging, however, with Foreign Secretary Jeremy Hunt downplaying the odds of a no-deal Brexit.
Mr Hunt said: “[EU leaders] want to give Britain a good deal, because they know how important we have been for the security and prosperity of Europe in the post-war period.
“[However], they’re worried that if they give us a good deal, other countries will follow suit.
“What I’m saying to them is: if you’re thinking about this logically … recognise that the consequences of an acrimonious, messy divorce will be terrible for the EU project as well.”
Today’s UK economic news has been largely positive – industrial orders activity has slowed, but the government has seen its biggest monthly budget surplus in July in 18 years.
PricewaterhouseCoopers Chief Economist John Hawksworth responded favourably to the news.
He said: “This better news on the deficit should give Chancellor [Philip Hammond] a bit more wiggle room when it comes to his Budget in November.”
The euro’s recent rise against a weakened pound is mainly down to increased euro demand as a result of a devalued US dollar.
The US currency has fallen following comments from President Donald Trump, in which the US leader criticised the Federal Reserve for raising interest rates.
The US dollar typically strengthens on interest rate hikes, but Mr Trump believes the currency needs to be weaker to boost exports and reduce the national trade deficit.
All of this activity has rattled US dollar traders, making the safer euro a more desirable currency.
The next economic data which could affect pound euro trading will be Thursday’s Eurozone PMIs, which will cover economic activity estimates for August.
Both the composite and services sector PMIs are expected to show growth, which could push the euro pound exchange rate higher.
The risk of pound to euro losses on Thursday is increased because the later Confederation of British Industry (CBI) distributive trades reading is tipped to show slowing activity.