The Great Britain pound declined today, continuing to be dragged down by worries about the Brexit.
Today’s news looked positive for the sterling as British banks passed the stress test performed by the Bank of England. But BoE Governor Mark Carney warned that the situation may deteriorate in case of a messy Brexit:
The combination of a disorderly Brexit, a severe global recession and stressed misconduct costs could result in more severe conditions than in the stress test.
Currently, the main hurdle for Britain’s negotiations with the European Union seems to be the question of borders with Northern Ireland — a topic that the United Kingdom wants to discuss as a part of a trade deal, while the EU wants to tackle it before discussing trading.
GBP/USD declined from 1.3314 to 1.3286 as of 14:17 GMT today, retreating from the daily high of 1.3357. EUR/GBP advanced from 0.8931 to 0.8950.
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