EU Leaders Say the UK Needs to Make some movements towards the agreement, while the pound is falling sharply 

brexit

 

The pound fell sharply against the dollar. EU leaders did not work intensively with the UK to reach a trade deal. They are required from Britain to make the needed moves to secure an agreement. EU leaders are calling on the UK to make more concessions to reach the new deal on trading. The UK Brexit negotiator David Frost said that the UK is no longer working on reaching future partnerships with the EU because they are not trying to make some agreement with the UK. Everyone expects from Prime Minister Boris Johnson to announce the decision – will the UK walk away from the deal or will there be any continued talks about the negotiations.
There is a huge lack of communication between the UK and The EU, so the government is struggling. Especially from the fact that there is a second wave of Covid-19 in the UK so the government is still making the restrictions more intense and this is slowing the whole recovery process. With no financial support from the government, the UK business expects to have a major downfall. Even transport use is not recovered yet, not to mention other things.

How the UK recession affected people

The UK economy is experiencing a painful collapse. Coronavirus pushed the marketplace into a deep freeze. Businesses are clothing and workers are staying at their homes because of the second wave of the pandemic in the country. GDP dropped by more than one-fifth in the quarter of the year. The failure of 20.4pc in the three months to June is definitely one of the worst times of the history of the UK. With so much volatility surrounding the Brexit dilemma, thousands of traders have rushed to trade FX without deposit in order to get their foot in the door and somehow build a portfolio that is Brexit-deadline-ready to finally capitalize on the GBP’s guillotine. The situation in the UK is far more craggy than anything witnessed in the Great Depression. The financial crisis during coronavirus is even bigger than the Slump of 1921. At that time the biggest decline was just over 12pc.

It will take so much time for the UK to recover from the whole situation/ Each business was hit hard during the recession. That is why more people are finding themselves interested in the trading industry, especially trading on the foreign market. Beginners are trying to educate themselves as fast as possible because of literally no income. Many families are left with nothing, so the only way out for them in the Forex market. When in September the lockdown eased, the growth started to return little by little, but the hope of the people was once more ruined when the coronavirus cases started to grow again in the country, so the restrictions became even harder to adopt, than it was before. So far, the unemployment rate in the UK has barely moved. The main question is, will the economy ever be back to normal? Will the workers get back to their jobs or will they lose them? People are unable to pay their mortgages. They are selling everything in order to survive in this terrible economy.

The longer-term impact

Even when the pandemic will be over, there is still no guarantee that everything will come back to normal and people will get back everything they have lost. Hopefully, there will be businesses that will boost the economy and the investors will encourage themselves to put money in different fields. The bank of England will reasonably recover quickly, but the GDP will not. This economic crisis will be remembered bigger than just financial downfall. The authorities are predicting that the economy of the UK will start recovering in the next year. But no one knows surely how strong the economy will be after the pandemic. People are in fear. They don’t know what will happen.

With all of the situation, if there are no coronavirus in the future, it is not a fact that people will start traveling and going out because they will need time to recover from the situation. The uncertainty of what is felt right now is unbearable because no one knows what will be the consequences of these times. As for now, the nations are scared of spending money. They are trying to save their funds as much as possible because no one knows how they will need this money in the future. Governments are borrowing huge sums to support the people in the country but in the long run, borrowing money will cause the problems because the nation will be obligated to pay them back. Many countries are also feeling the same. As for now, no one knows what the future holds for us.

Leave a Comment


Broker Cyprus TopFX