usd-100-bank-notes - USD

The British pound is lower against the US dollar on Monday afternoon after a newspaper interview with Sajid Javid, the UK Chancellor of the Exchequer kindled fears over Brexit. Elsewhere, US stock markets were closed for the Martin Luther King Jr. Day national holiday.

GBP/USD was lower by 14 pips (-0.1%) at 1.2995 with a daily price range of 1.296-1.301 as of 1.30pm GMT, sending the currency pair back below the 1.30 level widely-watched by traders.

The pound

The British pound sunk on the open of trading on Sunday evening and only begun to recoup some of the losses as Monday morning went on. The weekend comments from Chancellor Sajid Javid on Brexit were a reminder of the uncertainties that lay ahead in trade talks with the EU, which are set to begin as soon as the UK leaves the EU on January 31.

The Chancellor warned manufacturers that they would not be supported by the Treasury because they have had three years to prepare for trading in new ways after Brexit. Mr Javid told the Financial Times that there will be some winners and some losers when Britain leaves the EU. The main point of contention for industry will be where the UK choose to align with EU regulations and where it chooses to diverge.

A spokesperson for the Prime Minister later offered some additional clarifications about what the government will be seeking in trade negotiations, helping the pound rebound from its earlier losses. The main points were that “We are seeking a Canada-style free trade agreement” and “There will be no alignment with EU rules”. These are starting positions and there is still a good chance that the UK will align in many areas. Nonetheless, the harder the stance taken by the UK, the higher the risk that an agreement cannot be found, and Britain leaves the EU without a deal at the end of 2020.

The dollar

No government statistics are being released in the US on the national holiday so with many traders away from their desks, US dollar volumes have been well below average. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.