Sterling side way swing continues, as Trump totters Brexit deal in a criticism
- In a recent press briefing, President Donald Trump warns that the EU-UK Brexit could pour cold water over US-UK trade relationship
- UK PM Theresa May getting prepared to take hit over the recently signed Brexit deal
- Markets eyeing towards British parliament, as voting polls support Brexit oppositions
There had been a recent comment from US president Donald Trump and he warned that the current Brexit draft would hamper future US-UK trade ties. Followed by the comments, the sterling is jolted lower and has broken its key initial support at 1.2770. While this report is being written, the GBP/USD pair is residing on 1.2744, as pressure is mounting high on UK PM Theresa May on the newly signed Brexit treaty between UK and EU.
As US president Donald Trump states, the UK proposal sounds like a great deal for the EU and they (the UK) might not trade with us. This unexpected intervention from President Donald Trump heaped pressure over GBP, as it faltered and plunged below 1.2750. However, the market remains highly volatile, as Euro slipped and has fallen below 1.1300, currently reigning just below 1.1300.
In the face of this tempestuous comment from US president Donald Trump, Euro and GBP keep falling and GBP is closing in towards its August low at 1.2660 (the lowest in 17 months). If pound sterling’s key support at 1.2670 is broken, the further horizontal support is lying at 1.2589 (the October 2016 sell-off)
GBP/USD weekly price chart
As the weekly chart showed, the last weekly gain of GBP/USD pair had been about two months ago and the recent downtrend is suggesting that the GBP/USD might stumble further, until there is any Brexit improvement.
As of we stand in this point, the Theresa May’s conservatives are 7 votes behind passing the deal, holding 316 lawmaker’s support in the house of commons. On the flip side, the Brexit opposition led by Labor party has 323 votes for now. However, fumbling and further attempt to coalitions in the British Parliament is anticipated, before this vote takes place on December 10th.
Today’s Pound sterling souring has been ignited by US president Donald Trump, as GBP/USD pair has now been traded around 1.2736 region and market sentiment remains gloomy and timid. Amidst this recent Brexit turmoil and Trump’s recent comment, GBP has been jolted downwards and further fall is likely, as Trump warns that this Brexit agreement might hamper UK-US relationship.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]