Pound Has `A Lot of Downside Potential' If No Brexit Deal, Rabobank Says

The EU has rejected a key part of the UK's trade proposal, causing market uncertainty. Investors are cautious, with Sterling showing volatility. Theresa May is actively negotiating Brexit terms, facing time constraints with an October deadline. The Bank of England may consider an interest rate hike amid Brexit uncertainties.

What has the EU rejected in relation to the Prime Minister's proposal?

What is the significance of the 12-week timeline mentioned in the text?

How are investors reacting to the current political uncertainties regarding Brexit?

What actions is Theresa May taking to support her Brexit deal?

What concerns do market commentators have as the October deadline approaches?