UK markets closed

Pound hovers in anticipation of UK unveiling its detailed Brexit plan

Lianna Brinded
Head of Yahoo Finance UK
New UK £1 coin with British union jack flag. Photo: Getty

The pound against the US dollar (GBPUSD=X) is hovering around one week lows as reports surface that the UK government will unveil its detailed plans when it comes to negotiating with the European Union over a Brexit deal.

Sterling against the dollar is marginally down by less than 1% at $1.2286 as investors stay cautious over any new developments the UK government may reveal during its annual Conservative party conference this week.

Chart: Yahoo Finance

The biggest revelation comes from a report by the BBC that claims the UK government will make more of its Brexit plans more public over the next few days, including its proposals for creating "customs clearance zones" in Northern Ireland and Irish Republic. This is, by far, the biggest obstacle for a Brexit deal — preventing a hard border between the two regions.

The next two weeks will be some of the most crucial for fate of Britain — there is an EU summit on 17 October and politicians have passed a law that prime minister Boris Johnson has to seek an extension to the Brexit deadline (31 October) is he is unable to pass a deal by 19 October.

READ MORE: The UK industries likely to be hit hardest by Brexit

Johnson, who has been a hardline Brexiteer since campaigning started to either Leave or Remain in the EU pre-2016, said at the the Conservative Party conference on Monday that he is hoping for a deal, rather than a no-deal Brexit.

"I'm cautiously optimistic. We have made some pretty big moves, we are waiting to see whether our European friends will help us and whether we can find the right landing zone," he said.