Pound falls against dollar on August 9 amid no deal Brexit fears

Markets
Insider

LONDON — The pound’s extended slump continued on Thursday as it
fell to a fresh low against the dollar.

Sterling
is down 0.2% the dollar to $1.2858 at 9.45 a.m. BST (4.45
a.m. ET), marking a fresh 11-month low. The pound is
up 0.03% against the euro to €1.1101, still trading close to
9-month lows.

Connor Campbell, a marketing analyst at SpreadEx, said in an
email on Thursday morning: “The fears of a ‘no deal’ Brexit have
really gathered steam in the last few sessions, a snowball effect
stemming from Mark Carney and Liam Fox’s warnings either side of
the weekend.”

The deadline for Britain to leave the EU is March 2019 and the UK
government has so far made little progress in agreeing on a
post-Brexit trading deal with the EU.

Bank of England Governor Mark Carney and the
UK’s International Trade Secretary, Liam Fox, have both
highlighted the rising likelihood of a no-deal Brexit in recent
weeks, warning that Britain could crash out of the EU without any
deal on its future trading relationship with the bloc.

Michael Hewson, the chief market analyst at CMC Markets UK, said
in an email: “Whether you believe such a scenario is likely or
not, such is the incompetence of this government, as well as its
opposition, investors would be foolhardy not to take some steps
to hedge against such an outcome.”

Fiona Cincotta, a senior market analyst at City Index, said:
“Brexit concerns are likely to remain the key driver for the
currency until Friday when preliminary second-quarter UK GDP data
will be released alongside the June manufacturing and industrial
production figures.”

See the latest EUR-USD movements here.