On Wednesday morning, GBPUSD is moving downwards and keeping the negative momentum of the last couple of days.
The British Pound continues falling against the USD on Wednesday. The current quote for the instrument is 1.3010.
Market players just can’t focus on macroeconomic indicators because the Brexit is still grabbing the biggest piece of the pie. For example, right now, the Pound is being pressured by possible consequences of Boris Johnson’s tough stance in his dialogue with the European Union. The rumor has it that the parties might not have enough time during the transition period to agree on trade relations. It’s a huge risk for the United Kingdom.
If London fails to make a deal with the alliance and the agreement turns out to be worse than the UK expects, it will have a strong negative impact on the British business. It’s very important to know whether the United Kingdom gets the opportunity to cooperate with its European partners without paying extra fees.
However, Johnson says that the UK doesn’t have to and won’t adhere to the EU’s rules related to environmental protection, as well as employment and labor laws. Of course, his words provoked a reaction out of Brussels, which warned the UK about the risks with access to the European market.
Surely, it puts additional pressure on the Pound, but there isn’t much that can be done in this situation.