British Pound Crashes Against US Dollar on Delay of Crucial Brexit Vote

The  Sterling pound today crashed against the  US dollar following media reports that the  crucial Brexit vote scheduled for  tomorrow had been postponed by  the  Prime Minister. The  pound had reacted in  a  stable fashion earlier in  the  day following the  release of  the  latest monthly UK GDP estimate, which was in  line with expectations.
The  GBP/USD currency pair today dropped from an  intraday high of  1.2760 to  hit a  low of  1.2606 in  the  early American session.
The  cable opened this week’s session with a  gap down before rallying higher in  the  early Asian session. The  currency pair later headed lower in  the  early European session as  markets awaited the  release of  the  latest UK GDP data. According to  the  Office for  National Statistics, The  UK GDP grew by  0.1% in  October, which translated into a  quarterly 0.4%; both prints met expectations. The  pair still headed lower as  the  trade balance data for  October missed expectations by  a  large margin due to  the  widening trade deficit. The  Brexit new headlines applied further selling pressure on  the  pair driving it lower.
A  Bloomberg report stating that British PM Theresa May would postpone tomorrow’s vote increased the  selling pressure on  the  pair causing it to  crash. Comments from the  European Commission stating that the  current Brexit deal was the  final deal also drove the  pair lower.
The  Brexit headlines and  tomorrow’s UK jobs data will affect the  pair’s performance over the  short-term.
The  GBP/USD currency pair was trading at  1.2627 as  at  15:38 GMT having crashed from a  high of  1.2760. The  GBP/JPY currency pair was trading at  142.60 having dropped from a  high of  143.71.

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