Sterling’s selloff accelerates today as talk of the chance of no-deal Brexit heat up. That came after UK Trade Minister Liam Fox said over the weekend that there is no more than 60-40 chance of no-deal Brexit. Prime Minister Theresa May’s spokesman tried to tone it down and said “We continue to believe that a deal is the most likely outcome because reaching a good deal is not only in the interests of the UK, it is in the interests of the EU and its 27 members.” Nonetheless, the spokesman also said that Fox is right to said there is risk of a no-deal. Meanwhile, the government is prepared for “all eventualities.
Technically, GBP/USD finally takes out 1.2956 low to resume the fall from 1.4376. 61.8% retracement of 1.1946 (2016 low) to 1.4376 at 1.2874 is next target.
GBP/JPY is on course for 143.18/76 support zone.
Though, EUR/GBP continues to range bound as Euro is itself also pressured.
