Investors' sentiment for a Brexit deal soured in the overnight hours after the US President negatively commented that the Brexit deal might negatively impact trade between the US and Britain. While the Prime Minister is already fighting to get the backing of her own Conservative party to endorse the latest proposal in the Parliament, Trump's comments couldn't have come at a worst time. Analysts fear her Parliamentary critics will use Trump's rhetoric to dismiss and deny the latest proposal, which has resulted in sell pressure for the Pound.
As reported at 11:55 am (GMT) in London, the GBP/USD was trading at $1.28, down 0.50% and off the session trough of $1.2734 while the high was recorded at $1.2820. The EUR/GBP is trading at 0.888 Pence, a gain of 0.43%; the pair has ranged from 0.88378 Pence to 0.88830 Pence.
Trade War Worries Build
Trump's comments on trade, in general, have helped push the greenback broadly higher. On the flip side, higher risk currencies with ties to China are likely to soon see some negative sentiment as the trade war between the US and China escalates. Currently, the AUD/USD was trading higher at $0.7242, up 0.43% while the NZD/USD was trading at $0.6795, up 0.37%. The G20 summit begins on Friday in Buenos Aires.