Pound Suffers Biggest Daily Fall in 28 Months, Could Fall Lower - Forex News by FX Leaders
GBP/USD

Pound Suffers Biggest Daily Fall in 28 Months, Could Fall Lower

Posted Tuesday, July 30, 2019 by
Arslan Butt • 1 min read

Fears of a no-deal Brexit continued to exert downward pressure on the Pound, weakening it to its lowest levels in 28 months. At the time of writing, GBP/USD is trading at around 1.216, after having suffered its biggest daily fall on Monday.

The long-term outlook for the Pound still remains bearish as markets expect it to fall even lower as the risk of a no-deal Brexit climbs higher. After his appointment, PM Boris Johnson continues to insist that he wants to renegotiate the Brexit deal with the EU, an offer the EU has repeatedly turned down.

Meanwhile, the UK government seems to be preparing for a no-deal Brexit just like Johnson had campaigned prior to coming to power. For now, it looks like the government is all set to blame EU for being stubborn and forcing Britain to exit without a deal.

In addition, the Sterling remains bearish over the possibility of an early parliamentary election in the UK. As of now, Johnson remains the favorite and if the UK headed for polls, there is a high likelihood of the Conservative Party being voted to power. Winning an election would give Johnson more credibility and power to push his plan for a hard Brexit.

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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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