GBP/USD Back Above 1.30, Set for Worst Week in Over Two Years
Arslan Butt • 1 min read
The Pound is trading slightly bullish against the US dollar into the last trading day of the week, regaining after slipping below the key 1.30 level as markets wait for MPs to vote on the Brexit deal today. At the time of writing, GBP/USD is trading at around 1.302, set for the worst weekly performance in over two years.
Not only has GBP/USD lost all the gains made over optimism about PM Boris Johnson’s victory in the recent elections, it has also lost around 2.4% of its value so far this week. PM Johnson’s insistence of a hard deadline for the end of the transition period have heightened concerns of Britain leaving the EU without a trade deal in place by the end of next year, driving weakness in the GBP.
Markets continue to worry if the short transition period would be adequate time for the British government to finalize trade agreements with the EU and other nations before the transition period ends on December 31, 2020. GBP/USD is also trading under pressure in anticipation of UK’s GDP data due to release later today.