British Pound Falls Again as Brexit Uncertainty Continues

Forex News

The British pound shows losses today, after yesterday’s significant gains. The GBP/USD pair is trading at 1.2832 level, having lost 0.34% on the day. The pound has been reacting in a volatile manner to Brexit developments.

The Brexit drama will continue on Sunday, as Prime Minister May and EU leaders are scheduled to sign a withdrawal agreement in Brussels at a special Brexit summit. The markets hope that European Union leaders and British lawmakers would back an agreement on Britain's departure from the bloc to avoid a no-deal Brexit.

On Thursday, the pound gained as much as 1%, following a 26-page political declaration, which Prime Minister May hopes to sign with EU leaders on Sunday in Brussels. The declaration reiterates that Britain will remain in a customs union with the EU, if the thorny issue of the Irish border is not resolved by the end of the transition period.

The pound has come under pressure this November after a handful of lawmakers made a failed bid to topple Prime Minister Theresa May. Analysts say, that the pound will fall back toward its post-referendum low against the Euro over the next six weeks, as the British currency and economy will have a turbulent time over the coming months.