The British pound today dropped to new lows today following the failed Brexit summit in Salzburg where the EU rejected Britain’s Chequers Plan. The GBP/USD currency pair was further weighed down by the US dollar’s recovery, which drove the cable lower.
The GBP/USD currency pair today dropped from a high of 1.3277 to a low of 1.3178 and was on a downtrend up to the time of writing.
The currency pair’s decline was largely triggered by the European Union’s rejection of the UK’s Brexit plan even as the Irish border remains a thorny issue to both sides. This was a major blow to the British PM Theresa May who had earlier stated that this was the only deal on the table. The European Commission President Jean-Claude Juncker and European Council President Donald Tusk both stated that the deal was unworkable, but called for a spirit of compromise on both sides.
The pair’s decline was further accelerated by the greenback’s moderate recovery from 2-week lows as tracked by the US Dollar Index. The release of the latest UK public sector net borrowing data by the Office for National Statistics had a muted impact on the currency pair.
The currency pair’s performance today will continue to be influenced by Brexit headlines given the lack of any major US releases.
The GBP/USD currency pair was trading at 1.3192 as at 10:46 GMT having dropped from a high of 1.3277. The GBP/JPY currency pair was trading at 148.75 having declined from a high of 149.72.
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