GBP/USD Slides to One-Month Low as Discussions on Brexit Deal Stall - Forex News by Strategia Forex
GBP/USD

GBP/USD Slides to One-Month Low as Discussions on Brexit Deal Stall

Posted Wednesday, October 9, 2019 by
Arslan Butt • 1 min read

The Pound continues to trade weakly into the US dollar after falling to a one-month low over worries of a breakdown in Brexit discussions between Britain and EU. At the time of writing, GBP/USD is trading at around 1.226 after a sudden spike.

The ongoing round of negotiations on Brexit are close to a dead-end after the EU rejected PM Boris Johnson’s latest Brexit deal. According to a source in Downing Street, German Chancellor Angela Merkel all but confirmed to Johnson on a telephone call that a deal on Brexit was unlikely.

European Council president Donald Tusk took to Twitter to express his frustration at Johnson, stating, “At stake is the future of Europe and the UK as well as the security and interests of our people. You don’t want a deal, you don’t want an extension, you don’t want to revoke. Quo vadis? [Where are you going?]”

For now, the most likely scenario appears to be another extension on Brexit until sometime next year, which will give Johnson a few months to work out a deal acceptable to the EU. Meanwhile, the UK government seems to be going ahead with preparations for a no-deal Brexit as it published a “No-Deal Readiness Report” on Tuesday detailing how it was ready for such a scenario.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of