GBP keeps declining with no solution in sight for Brexit

GBP/USD Could Rally if Britain Leaves the EU With a Deal: Reuters Poll

Posted Friday, October 4, 2019 by
Arslan Butt • 1 min read

According to a recent Reuters poll, GBP/USD could bounce higher after Brexit if Britain gets to leave the European Union with a deal in place. However, expect further weakening in GBP/USD in the event of a no-deal, chaotic Brexit.

Earlier this week, PM Boris Johnson presented what he called his ‘final’ Brexit plan to the EU, proposing check posts along the Irish border as an alternate to the Irish backstop. However, for now, markets are not convinced that the EU will accept this proposal and let Johnson have his way.

Although the deadline is less than a month away, markets are no closer to clarity on just how Brexit will occur. Despite economic data coming out, Brexit has continued to dominate the sentiment and impact GBP’s performance ever since the 2016 referendum.

If Britain leaves with a deal, GBP/USD could rally as high as 1.27-1.34, giving a significant boost to the Sterling. Although, in case of a no-deal Brexit, the Cable could slide lower to trade between 1.10 and 1.19 after Britain departs from the Union.

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