Brexit Talks Set to Close With No Deal – GBP/USD Plunges
Arslan Butt • 1 min read
It’s been six weeks now that the Brexit talks between the Conservatives and Labour have failed to reach a consensus, hiking sentiments that the negotiations may end without an agreement. Theresa May and Jeremy Corbyn will soon migrate to a second phase, aimed at recognizing a process of parliamentary votes intended to obtain consent.
The UK was expected to depart from the EU in March, but the deadline was pushed back to October 31 after MPs refused Mrs. May’s proposed agreement – the Brexit deal settled with the EU – three times.
That provoked efforts to find a way to end the deadlock through cross-party discussions between Labour and the Conservatives. However, both parties haven’t agreed yet, which is adding extra pressure on the Sterling. Consequently, the GBP/USD has dropped below 1.28 support as investors eye 1.2770 target ahead.