British Pound Heads Lower on Barnier and Carney Brexit Warnings

The  British pound today dropped to  new daily lows following warning comments made by  the  European Union’s chief Brexit negotiator, Michel Barnier regarding the  latest Brexit deal. The  pound’s decline was further weighed down by  a  warning from the  BoE Governor Mark Carney that most UK businesses are ill-prepared for  a  no-deal Brexit scenario.
The  GBP/USD currency pair today dropped from an  Asian session high of  1.2850 to  a  low of  1.2755 in  the  mid-European session.
The  currency pair’s decline begun in  the  late Asian session as  the  greenback started making gains against the  Sterling pound. The  pair’s drop accelerated in  the  early European session following Michel Barnier’s warning that the  EU would not offer Britain another deal, which caused investors to  flee the  pound. The  warning by  Mark Carney that UK businesses were unprepared for  a  no-deal Brexit also created anxiety in  the  markets, which extended the  pair’s drop. The  mixed money and  credit report for  October released by  the  Bank of  England had a  muted impact on  the  currency pair.
The  fact that the  US dollar was recovering from yesterday’s dovish comments by  the  Federal Reserve Chairman, Jerome Powell also contributed to  the  pair’s decline. The  US Dollar Index had rallied to  a  high of  97.01 at  the  time of  writing.
The  currency pair’s short-term performance is likely to  be influenced by  the  release of  the  US PCE and  jobless claims data scheduled for  later today.
The  GBP/USD currency pair was trading at  1.2770 as  at  12:10 GMT having dropped from a  high of  1.2850. The  GBP/JPY currency pair was trading at  144.71 having fallen from a  high of  145.69.

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