GBP/USD Turns Bearish Over Heightened Fears of Johnson’s Transition Period Deadline

The Pound continues to trade bearish against the US dollar into Wednesday after a steep decline following rising concerns about PM Boris Johnson’s insistence on the hard deadline for the end of the post-Brexit transition period. At the time of writing, GBP/USD is trading at around 1.31.

Concerns of an impending no-deal Brexit were heightened once again as markets worry about whether the British government can finalize trade agreements in place with other countries within less than a year after Brexit takes place on January 31, 2020. The transition period officially is set to end on December 31, 2020, leaving Britain with less than a year to formalize trade agreements, which markets worry leaves too little time for proper negotiations.

Further bearishness in GBP/USD was driven by a strengthening in the US dollar on the back of positive economic data releases from the United States. Following reports of a strong rebound in manufacturing production and a better than forecast housing starts data for November, the US dollar soared to its highest levels in a week against its major peers.

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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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