Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

GBP Slides Following Brexit Trade Deal Worries

Published 23/10/2021, 05:30 am
Updated 23/10/2021, 05:30 am

By Sam Boughedda

Investing.com — The pound sterling weakened late in Friday's session after Bloomberg reported that the European Union could terminate the post-Brexit trade deal if the U.K.'s disagreement on the Northern Ireland border deepens.

The U.K. has spoken of suspending the Northern Ireland Protocol, which governs trade between Northern Ireland and the rest of the U.K. Prime Minister Boris Johnson has threatened to trigger article 16, which allows the protocol to be suspended if it affects everyday life. Reports have stated the two sides have held crunch talks in a further attempt to resolve the issues.

A decision by the EU to terminate the Brexit trade deal is not a straightforward one and would need the unanimous backing of all 27 EU countries.

The news saw the GBPUSD fall to a low of 1.3736, down around 0.4% from Thursday. However, it is still hovering just above that level at 1.3743.

Since the start of October, the pair has experienced a strong rise, climbing from just above the 1.34 area to a high of 1.3834 on Wednesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.