- The UK and the EU are struggling to find a solution to the Northern Ireland Protocol.
- GBP loses steam against its rivals in the second half of the day.
- The general weakness of the USD limits the decline of the GBP / USD for the time being.
The pair GBP/USD came under renewed downward pressure during US business hours on Wednesday with the latest Brexit headlines weighing on the British pound. At time of writing, the pair is shedding 0.16% on the day at 1.4133.
Lack of progress in Northern Ireland Protocol negotiations hurts sterling
Hours earlier, the British government reiterated that it will consider all available options to safeguard peace, prosperity and stability in Northern Ireland if they fail to find a solution with the European Union. On the same note, David Frost, the British minister responsible for implementing the Brexit deal, said there was no progress or breakdown in the Northern Ireland Protocol talks with the EU.
Commenting on the same matter, Maroš Šefčovič, Vice-President for Interinstitutional Relations and Foresight at the European Commission, noted that they are at a crossroads in their relationship with the UK.
Reflecting the negative impact of these comments on the GBP, the EUR / GBP is up 0.4% on the day at 0.8628.
On the other hand, the sharp drop seen in US Treasury yields continues to hurt the USD on Wednesday and limits the decline in GBP / USD for the time being. At the moment, the US dollar index is down 0.2% to 89.96.
No high-level macroeconomic data from the US will be released for the remainder of the day and Brexit headlines are likely to continue to affect GBP / USD movements.
Technical levels
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