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Pound Falls on Johnson’s Brexit Comments Amid Low Liquidity

February 17, 2020 at 19:47 by Simon Mugo

A column of 50 British pound notesThe Sterling pound today fell against the US dollar as the UK and the European Union continue to play hardball with each other ahead of the official Brexit negotiations. The GBP/USD fell for most of today’s session amid low-liquidity conditions, given that the US markets remained closed even as the country celebrates President’s Day.

The GBP/USD currency pair today fell from an opening high of 1.3052 to a low of 1.3001 in the Ameican session and was trading near these lows at the time of writing.

The currency pair traded sideways for most of today’s session amid a lack of fundamental drivers given the empty UK and US dockets. Therefore, the pair remained highly susceptible to Brexit headlines, which came in the form of Boris Johnson‘s comments that he was not seeking anything special from the EU. Johnson’s remarks were not received well by France, which promised to give the UK a hard time during the upcoming negotiations. Britain’s chief Brexit negotiator David Frost commented that the UK wanted a free trade agreement similar to the one between the EU and Canada. However, top EU diplomats, including Ursula von der Leyen, the European Commission President, seem opposed to this plan.

The cable’s decline today was further accelerated by investors adopting a wait and see attitude towards the pair given the major UK macro releases scheduled for later this week starting tomorrow.

The currency pair’s future performance is likely to be affected by tomorrow’s UK jobs report and Brexit headlines.

The GBP/USD currency pair was trading at 1.2999 as at 19:46 GMT having juts broken the crucial 1.300 support level. The GBP/JPY currency pair was trading at 142.91 having dropped from a high of 143.35.

If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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