GBP Slides Following Brexit Trade Deal Worries

  • Forex News
GBP Slides Following Brexit Trade Deal Worries

By Sam Boughedda — 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.

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