British holidaymakers should brace themselves for more Brexit pain when they change their pounds into euros, with a leading investment bank forecasting the currencies are on the way to parity. It would signal the first time in its 18-year history the euro has reached parity with sterling. However, official figures on Thursday showed the trade deficit widened as a fillip to UK trade again failed to materialise. Morgan Stanley also pointed to Britain’s debt levels holding back growth, and investment evaporating after Brexit. “Brexit uncertainty may also weigh on business investment, which will weaken the already lacklustre productivity growth outlook, suggesting real rates staying low.”

Source: The Guardian August 11, 2017 15:18 UTC