Pound Falls on Johnson’s Brexit Comments Amid Low Liquidity

The  Sterling pound today fell against the  US dollar as  the  UK and  the  European Union continue to  play hardball with each other ahead of  the  official Brexit negotiations. The  GBP/USD fell for  most of  today’s session amid low-liquidity conditions, given that the  US markets remained closed even as  the  country celebrates President’s Day.
The  GBP/USD currency pair today fell from an  opening high of  1.3052 to  a  low of  1.3001 in  the  Ameican session and  was trading near these lows at  the  time of  writing.
The  currency pair traded sideways for  most of  today’s session amid a  lack of  fundamental drivers given the  empty UK and  US dockets. Therefore, the  pair remained highly susceptible to  Brexit headlines, which came in  the  form of  Boris Johnson‘s comments that he was not seeking anything special from the  EU. Johnson’s remarks were not received well by  France, which promised to  give the  UK a  hard time during the  upcoming negotiations. Britain’s chief Brexit negotiator David Frost commented that the  UK wanted a  free trade agreement similar to  the  one between the  EU and  Canada. However, top EU diplomats, including Ursula von der Leyen, the  European Commission President, seem opposed to  this plan.
The  cable’s decline today was further accelerated by  investors adopting a  wait and  see attitude towards the  pair given the  major UK macro releases scheduled for  later this week starting tomorrow.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s UK jobs report and  Brexit headlines.
The  GBP/USD currency pair was trading at  1.2999 as  at  19:46 GMT having juts broken the  crucial 1.300 support level. The  GBP/JPY currency pair was trading at  142.91 having dropped from a  high of  143.35.

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