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The UK lost market share in the US, Germany and China, thanks to the negative impact of the COVID-19 pandemic and Brexit chaos on trade, Reuters reports, citing a report by Aston University’s Lloyd’s Banking Group Centre for Business Prosperity.

Key findings

“In some key export destinations – Germany, the UK and China – the UK seems to have suffered a sharper decline, experienced a slower recovery, and seen its global competitiveness dwindle.”

“The UK’s decline in exports to the U.S. appeared the sharpest in both absolute and relative terms and the most prolonged among the major European countries (except for France).”

“The combination of COVID, Brexit and the UK’s long-term productivity challenges will put British businesses in an adverse position for the foreseeable future.”

Market reaction

The findings of the above report is likely weighing on the pound alongside the rebound in the US dollar across the board, as the market mood worsens.

GBP/USD drops 0.17% to test the daily lows of 1.3811, having hit a daily high at 1.3866 earlier on the session.