British Pound Slips Amid Fears Over a Bad Brexit Deal
British pound showed significant losses amid Brexit worries. The pound fell by 0.32% against US dollar to 1.2962, after it hit 1.2956 level (the weakest point since September last year). The British currency was also weaker against the euro, with EUR/GBP rising 0.24% to 0.8918.
The drop in the pound came after Liam Fox (Britain’s international trade secretary) said in an interview that there was a 60:40 chance that the UK would leave the European Union without an agreement. He accused the European Commission of “intransigence” putting EU rules above economic well-being. Fox has also criticized the EU, saying the risk of no agreement is being increased by those in Brussels committed to “the purity of the EU’s ideology”.
The statement came after Mark Carney (Bank of England Governor) warned on Friday that there is an “uncomfortably high” risk of Britain exiting the EU with no deal.