Pound Hits Multi-Year Lows on Brexit Clash Between the UK and EU

The Sterling pound today fell against the US dollar as UK and European Union leaders exchanged words regarding the reopening of Brexit talks. The GBP/USD currency pair was on a losing trend from most of today’s session as markets reacted to the heightened possibility of a no-deal Brexit.
The GBP/USD currency pair today fell from an opening high of 1.2459 to a low of 1.2376, a level last seen in Apri 2017, and was near these levels at the time fo writing.
The currency pair traded with a bearish bias from the open after the UK Prime Minister Boris Johnson yesterday demanded that the EU abolishes the Irish backstop before reopening Brexit negotiations. The EU President Jean-Claude Juncker responded tody that the EU would not reopen Brexit talks and that Johnson’s demands were unacceptable to the block. A summary fo what the prime minister discussed with German Chancellor Angela Merkel earlier today revealed that the PM maintained the position he had expressed during his House of Commons speech on Thursday. Investors are worried about the increasing possibility of a hard Brexit.
The pair’s fall was accelerated by the much stronger greenback as tracked by the US Dollar Index, which posted gains of 0.30% to hit a high of 98.10. The release of the upbeat US Q2 GDP data also contributed to the pair’s decline.
The currency pair’s performance over the upcoming weekend is likely to be affected by geopolitical events.
The GBP/USD currency pair was trading at 1.2385 as at 17:12 GMT having fallen from a high of 1.2459. The GBP/JPY currency pair was trading at 134.62 having dropped from a high of 135.39.

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