- GBP / USD has fallen sharply following the latest news on trade talks between the UK and the EU.
- British Prime Minister Johnson says substantial and important differences remain.
- The US Dollar DXY Index remains negative below 92.00.
The pair GBP/USD is under renewed downward pressure and has fallen to a daily low of 1.3317 after the latest news on trade negotiations between the EU and the UK. At the time of writing, the pair is down 0.19% on the day at 1.3330.
No-deal Brexit fears weigh on GBP
Citing an EU diplomat, Reuters reported on Friday that the EU ambassadors called on the European Commission to urgently present contingency measures for a no-deal Brexit. Furthermore, British Prime Minister Boris Johnson has noted that substantial and important differences remain in the negotiations and he has said the UK can prosper with or without a deal.
These comments have caused GBP / USD to lose almost 40 pips in a matter of minutes. Additionally, the UK’s FTSE 100 index has lost traction to reflect cautious market sentiment, shedding 0.5% on the day at 6,331 points.
On the other hand, The DXY US Dollar Index remains relatively quiet on Friday, allowing GBP / USD to limit its losses for the time being. No US macroeconomic data will be released for the remainder of the day and the US equity markets will close early due to the Thanksgiving holiday. At the moment, the DXY index is posting small daily losses at 91.97.
GBP / USD technical levels
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