GBP/USD Continues to Trade Bearish Over Worries of No-Deal Brexit - Forex News by FX Leaders
GBP/USD Continues to Trade Bearish Over Worries of No-Deal Brexit

GBP/USD Continues to Trade Bearish Over Worries of No-Deal Brexit

Posted Thursday, December 19, 2019 by
Arslan Butt • 1 min read

The Pound continues to trade bearish against the US dollar over concerns of a no-deal Brexit resurfacing all over again following PM Johnson’s decision to enforce a hard deadline for the end of the transition period. At the time of writing, GBP/USD is trading around 1.308.

With the Brexit Bill likely to pass a vote in the Parliament soon, letting Britain depart from the EU on January 31, 2020, there is less than a year to go until the transition period specified for Brexit finishes by the end of next year. This leaves very little time for Britain to negotiate the best possible trade agreements with the EU and other nations around the world.

PM Boris Johnson, meanwhile, continues to insist that his government will ensure that the Brexit transition period ends on December 31, 2020, which has raised worries in the market if the few months until then will suffice for negotiations to lead to a free trade deal between Britain and the EU.

With such a tight timeline, fears are rising once again that Britain could leave the European Union without a trade deal in place by the end of 2020. JPMorgan has pegged the likelihood of a no-deal Brexit at around 25% for now.

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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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