Pound weakens as 'no-deal' Brexit concerns grow

Pound weakens as 'no-deal' Brexit concerns grow

16 Sep 2019 02:56 PM

The British pound fell nearly half a percent on Monday as concern revived that Britain will struggle to secure a deal on the terms of its departure from the European Union.

The pound fell to a three-year low below $1.20 earlier this month, then soared more than 4%. Most of the gains came last week, after parliament voted to force Prime Minister Boris Johnson to seek an extension to the current Oct. 31 deadline for leaving the EU if no agreement has been reached.

But no solution is in sight and weekend rhetoric from both Britain and the EU suggests their positions remain far apart.

Market focus is shifting to a meeting between Johnson and European Commission chief Jean-Claude Juncker today.

On Monday, the pound fell 0.4% to 1.2427 after briefly popping above $1.25 in early Asian trading, its highest in nearly two months.

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