The Pound has finally recovered after being under heavy sell pressure; the currency had earlier approached a 1-year trough versus the US Dollar on the backs of increasingly jittery investors who worry about Britain's economic and trading future. Comments made by Liam Fox, the UK minister of trade, continue to negatively impact sentiment; Fox said that he foresaw a 60% likelihood of a “hard” Brexit.
As reported at 11:18 am (BST) in London, the GBP/USD was trading at $1.2902, up 0.12%; the pair has ranged from a session trough of $1.2842 to a peak of $1.2904. The EUR/GBP is trading at 0.89927 Pence, down 0.20% and near to the session low of 0.89918 Pence; the session high is recorded at 0.90306 Pence.
Analysts More Hopeful of a Soft Brexit
Despite investor concerns, most experts do believe that the British government will secure a trade deal with the EU. However, they point out that the next few months are crucial and that every week without a deal results in greater unease. Currently, experts are forecasting that the likelihood of a “no-deal” situation is at 25% but that number will grow as time marches on.