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