The British Pound (GBP) sank in Friday’s early trading, as Prime Minister Boris Johnson warned there is a “strong possibility” of a no-deal Brexit.
GBP continued the decline following Thursday’s losses. The GBP fell on the release of weak UK GDP data, which showed the slowest rate of GDP monthly growth since March.
Crunch Time for Brexit Talks.
Time is running out fast for there to be agreement reached before December 31st. The UK stops following EU trade rules on 31 December. If no agreement is reached between the UK and the EU, a no-deal Brexit and all the uncertainty that comes with it, ensues.
Despite weeks of intensive talks between the two parties, which included a meeting between Mr. Johnson and European Commission President Ursula von der Leyen on Wednesday, no breakthrough has been made.
The British Prime Minister said:
“At the moment, I have to tell you in all candour, the treaty is not there yet and that was the strong view of our cabinet.”
“There’s a strong possibility that we will have a solution much more like Australian relationship with the EU than a Canadian relationship with the EU,”
British PM
GBP Lower in All Major Forex Pairs
The British Pound found itself a strong sell target on Friday morning in the Forex markets. GBP was down nearly 0.70% against a resurgent US Dollar, before rallying to be 0.41% lower at the time of writing, with GBP/USD trading at 1.3237.
Elsewhere, the EUR/GBP was 0.38% up, the GBP/JPY down 0.57%, the GBP/CAD down 0.27% and the GBP/AUD down 0.47%.
Just this week, the British Pound has shed almost 1%, as the ongoing Brexit negotiations have so far proved fruitless. With more than a $1 Trillion worth of trade at stake, investors will be watching negotiations closely over the next few weeks.
