Pound Falls on Brexit Uncertainty As Talks Reach Critical Phase

The Sterling pound today fell against the dollar buffeted by Brexit headlines with both sides are working on getting a deal but preparing for a no-deal Brexit scenario. The GBP/USD currency pair completely ignored the release of the upbeat UK retail sales report as Brexit news remained the dominant factor fueling the pair’s price.
The GBP/USD currency pair today fell from an opening high of 1.3571 to a low of 1.3489 in the early London session and was near its daily lows at the time of writing.
The pound’s initial decline was fueled by Michel Barnier’s comments warning that everyone should be prepared for all Brexit scenarios as negotiations intensify. The release of the upbeat UK retail sales report for November had a muted impact on the pair. According to the Office for National Statistics, the UK’s retail sales fell 3.8% in November versus the expected 4.2% decline. Comments by a European Commission spokesman that there were difficult issues to resolve regarding fisheries also weighed on the pair. Comments by Prime Minister Boris Johnson that the talks will continue if there’s a chance for a deal stoked some optimism among investors.
The cable kept falling following comments by the Bank of England’s Gertjan Vlieghe advocating for negative rates via a rate cut greater than 10 basis points. Optimistic comments by Barnier who is seeking concessions from the EU on fisheries kept a floor on the pair. 
The currency pair’s future performance is likely to be affected by Brexit headlines over the upcoming weekend as a deal is expected then.
The GBP/USD currency pair was trading at 1.3501 as at 13:27 GMT having fallen from a high of 1.3571. The GBP/JPY currency pair was trading at 139.48 having dropped from a high of 140.32.
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Original from: www.earnforex.com