Pound Drops on Failed Brexit Summit Amid Resurgent US Dollar

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.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

fifty eight − = 53