Pound Slides as Concerns About Brexit Negotiations Grow

The Great Britain pound slumped today amid concerns about obstacles in the Brexit negotiations between the United Kingdom and the European Union.

The sterling was vulnerable after talks between British Prime Minister Theresa May and European Commission President Jean-Claude Juncker fell apart yesterday, though some analysts explained today’s drop also by profit-taking after the recent rally. While investors generally count on at least some form of a deal, Brexit fears will likely weigh on the pound until some good news comes out. It is interesting to note that, while the currency managed to recover yesterday despite the bad news, today its decline was much steeper.

GBP/USD dropped from 1.3443 to 1.3382 as of 11:08 GMT today. EUR/GBP rallied from 0.8795 to 0.8834.

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