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

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 See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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