​GBP Falls Suddenly amid UK-EU Division

WikiFX News (11 Dec.) -A no-deal Brexit seems possible as UK-EU trade talks reached the crisis point on Thursday, dragging GBP/USD down to 1.3250.

UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen failed to reach a consensus in the recent meeting due to differences on critical issues. Both sides agreed there was a long way to go, European officials said.

Regarding the core issue of fisheries, Johnson refused to accept any agreement that could weaken Britain's position in managing legislation or access to UK waters.

The two sides set this Sunday deadline to clinch the Brexit decision. The Prime Minister's spokesman confirmed that “PM is clear there will be no negotiations going into 2021”, which means nothing new about the deal will happen in 2021 if this Sunday cannot see an agreement.

The high uncertainty in a Brexit deal makes it possible for currency prices to reverse quickly from fluctuations or swings, said Commerzbank's forex experts

If the UK and EU fail to strike a deal, sterling could fall to $1.25 by the middle of next year, according to a Bloomberg survey.

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Chart: Trend of GBP/USD