Sterling Pound Tumbles to 11-Month Lows on Negative Sentiment

The  Sterling pound today dropped to  new 11-month lows following the  resurgence of  the  US dollar amid negative investor sentiment towards the  pound. The  GBP/USD currency pair was weighed down by  the  looming fears of  a  no-deal Brexit as  well as  the  ongoing trade standoff between the  US and  China.
The  GBP/USD currency pair today declined from a  high of  1.2960 hit in  the  Asian session to  a  low of  1.2897 in  the  mid-European session.
The  currency pair’s decline was largely due a  rebound in  the  US dollar as  tracked by  the  US Dollar Index following comments from China’s Foreign Affairs Ministry regarding US sanctions on  Iran. The  Chinese stated that they will not accept unilateral US sanctions on  Iran and  will continue trading with Iran, which boosted the  US dollar, as it is a  safe haven currency. The  increasing likelihood of  a  no-deal Brexit also dragged the  pair lower as  investors held off from buying the  pound and adopted a  wait-and-see attitude based on the  Brexit developments.
The  pound decline was slightly negated by  comments from the  Bank of  England‘s Ian McCafferty who stated that investor expectations for  several rate hikes in  the  next few years were acceptable. The  pair’s latest decline could also be attributed to  some technical selling at  the  previous year-to-date lows around 1.2925.
The  currency pair’s performance today is likely to  be affected by  investor sentiment and  geopolitical events given the  empty US and  UK dockets.
The  GBP/USD currency pair was trading at  1.2902 as  at  10:23 GMT having dropped from a  high of  1.1960. The  GBP/JPY currency pair was trading at  143.03 having declined from a  high of  144.27.

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