GBP/USD Falls Further Over Increased Possibility of No-Deal Brexit - Forex News by FX Leaders

GBP/USD Falls Further Over Increased Possibility of No-Deal Brexit

Posted Wednesday, July 17, 2019 by
Arslan Butt • 1 min read

On Tuesday, GBP/USD fell below the 1.24 level for the first time in over two years over increased worries of Boris Johnson becoming the next PM and taking Britain out of the EU without a deal. Although it has recovered slightly since then, the weakness in the Pound continues. At the time of writing, GBP/USD is trading at 1.241.

The possibility of a no-deal Brexit is increasing with each passing day, which would pose immense risk to the British economy and its businesses. In response, the Bank of England (BOE) could consider cutting interest rates further as it steps in to prevent severe fallout.

On Monday, PM hopefuls Boris Johnson and Jeremy Hunt stated that they would not accept the Irish backstop which was part of the Brexit deal put together by former PM Theresa May. The EU has insisted on the Irish backstop to prevent a hard border between Ireland and Northern Ireland after Brexit.

In addition, Johnson also remarked that he would consider sending UK lawmakers on leave for two weeks in October to prevent them from stopping his plans for a no-deal Brexit on the October 31 deadline.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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