Pound Crashes Against Dollar As No-Deal Brexit Appears Imminent

The  Sterling pound today plunged against the  dollar after both EU and  UK leaders said that the  possibility of  a  no-deal Brexit was quite high at  the  moment. The  GBP/USD currency pair fell on  the  reports given that many investors were hoping that the  EU and  UK would agree to  a  compromise deal.
The  GBP/USD currency pair today fell from a  high of  1.3324 in  the  late Asian market to  a  low of  1.3184 in  the  early London session and  was trading near these lows at  the  time of  writing.
The  currency pair fell today after British Prime Minister Boris Johnson told reporters that the  possibility of  a  no-deal Brexit was very likely. Investors were disappointed by  the  news given that PM Johnson had met his EU peer Ursula von der Leyen on  Wednesday in  efforts to  reach an  agreement. The  European Commission and  the  UK were unable to  agree on  fishing rights as  the  UK wants to  control its waters. On  the  other hand, the  UK does not want to  be tied down to  EU regulations, which it likens to  losing its sovereignty.
Comments by  Andrew Bailey, the  Bank of  England Governor that the bank has limited abilities to calm markets after the transition period did not boost the  pair. Bailey’s comments that the BoE is working with banks on  negative rates could have driven the  cable lower.
The  currency pair’s future performance is likely to  be affected by  Brexit news and  US dollar dynamics.
The  GBP/USD currency pair was trading at  1.3178 as  at  11:15 GMT having fallen from a  high of  1.3324. The  GBP/JPY currency pair was trading at  137.19 having dropped from a  high of  138.62.
If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *