UK currency slumps below $1.29

UK currency slumps below $1.29

On Wednesday, the UK pound headed south below $1.29. It turned out to be the first such a tumble since last year’s August. It took place against the backdrop of concerns that Great Britain wouldn’t be able to come to a compromise with the EU before exiting this trading bloc in March of 2019.

The currency pair GBP/USD headed south by 0.27% hitting 1.2903.

The UK currency also slumped versus the common currency, reaching its lowest value since November. The currency pair EUR/GBP gained 0.28% reaching 0.8986, which is not far from an intraday maximum of 0.8992.

This week the British pound has been pressured as UK trade secretary Liam Fox told that the United Kingdom would probably abandon the European bloc without a deal, driving concerns that trade chaos would heavily affect the UK economy.

Cable’s strength that took place on Tuesday generally neglected minor movements observed in the evergreen buck versus its key counterparts.

Used to estimate the major American currency’s purchasing power against its primary rivals, the USD index almost stood still sticking with 95.03.

Market participants had been injecting funds in the evergreen buck as a safe haven asset.  Meanwhile, trade tensions between America and China kept mounting.

On Tuesday, the US government told that America would start slapping 25% duties on another $16 billion of goods it buys from the Asian trade partner later this month.

The given move appears to be the latest by the American government to pressure the opponent into discussing trade concessions after it slapped duties on $34 billion of products in July, thus giving China grounds to respond.

However, market experts pointed to the Asian country’s firm trade data published on Tuesday, hinting that the world’s number two economy had yet to be knocked out by the tit-for-tat.

 

 

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