The Sterling pound today fell to new 4-moth lows against the US dollar as cross-party Brexit talks collapsed ahead of Theresa May’s impending resignation. The Labour Party officially called off the talks saying that there was no need to negotiate with a government that was about to collapse.
The GBP/USD currency pair today fell from an opening high of 1.2798 to a new 4-month low of 1.2736 to cap off a six-day losing streak.
The currency pair traded sideways for most of the Asian session before heading lower in the early London session following the collapse of the cross-party talks. The decision by Jeremy Corbyn‘s party came after the Conservative Party backbenchers forced Theresa May to set a departure timeline, which she did. The Prime Minister said that she would resign after the fourth vote on her Brexit deal in early June regardless of the outcome. Investors were worried about a no deal Brexit deal given Labour’s opposition to the current Brexit deal. Markets were also concerned about the future Conservative Party leader even as Boris Johnson joined the slew of candidates campaigning to replace Theresa May.
The cable’s performance was also influenced by trade headlines as China adopted a hard line stance towards the US. The risk-off sentiment also boosted the greenback as tracked by the US Dollar Index, which hit a high of 97.95.
The currency pair’s performance over the upcoming weekend is likely to be influenced by trade and Brexit headlines.
The GBP/USD currency pair was trading at 1.2755 as at 13:55 GMT having dropped from a high of 1.2798. The GBP/JPY currency pair was trading at 139.94 having fallen from a high of 140.69.
If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.
