- GBP/USD selling continues for the second day.
- Brexit headlines main driver for Cable.
- Global risk sentiment is a shade weaker than last week on US-China frictions.
Brexit-deal worries pulled down GBP/USD by 0.45 Percent today, continuing the slide on Friday from the highest level since April 2018 – 1.3540. The pair trades near 1.3380, at two-day lows.
The headlines ruled out any immediate Brexit deals, exerting pressure on the sterling pound. EU’s Brexit negotiator Michel Barnier has reportedly told EU diplomats that the three key outstanding issues remain unresolved and he denied any progress on fisheries. A Reuters report suggests that his briefing of EU envoys were downbeat on the prospect of an immediate deal.
Added to this is the preference for the US dollar among the investors on the news of planned US sanctions against at least a dozen Chinese officials alleging their involvement in elected Hong Kong opposition legislators’ disqualification.
The GBP/USD would be supported by the increased chances of a new coronavirus relief package as it would weigh on the greenback. Even then, the key focus remains on the Brexit developments, and it would drive the sentiments surrounding the sterling.
At the time of writing, one British Pound buys 1.3283 US dollars, down -1.08% as of 8:41 AM UTC.