The Sterling pound today crashed to new 3-week lows against the US dollar amid fears that Boris Johnson was pushing for a hard Brexit. The GBP/USD currency pair today fell from the early London session as investors sold the pair following Friday’s passage of the Brexit Withdrawal Bill.
The GBP/USD currency pair today fell from a daily high of 1.3031 in the early London session to a low of 1.2905 in the early American session and was near these lows at the time of writing.
The currency pair was stuck trading in a tight range during the Asian session before heading lower at the start of the London session. The pair fell amid concerns that the UK would crash out of the European Union without a deal next year. The recently passed Brexit bill limited the time available for trade talks between the EU and UK to December 2020. The EU’s top Brexit negotiator Michel Barnier clarified that the EU would put its interests first in the coming negotiations. Most analysts have criticised the hard deadline on trade talks, but Boris Johnson maintains that his government will not delay Brexit any longer.
The currency pair could not be saved by the weak US durable goods orders report released by the Census Bureau in the early American session. The cable’s price continues to be driven almost exclusively by Brexit headlines.
The cable’s future performance is likely to be influenced by geopolitical events given the upcoming Christmas holiday.
The GBP/USD currency pair was trading at 1.2925 as at 18:34 GMT having fallen from a high of 1.3031. The GBP/JPY currency pair was trading at 141.37 having dropped from a high of 142.50.
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