Breaking: GBP/USD drops near 90 pips even as UK PM Johnson, EU President von der Leyen agreed to announce decision by Sunday
|
- GBP/USD slumps close to 100 pips as large gaps remain over Brexit.
- UK PM Boris Johnson, EU President Ursula von der Leyen agreed to take a firm decision by Sunday.
- Risks get additional burden after declining at the Asian start.
- UK data-dump, Brexit headlines eyed.
In a swift reaction to the unwelcomed end of the dinner meeting between UK PM Boris Johnson and the European Union (EU) President Ursula von der Leyen, GBP/USD drops heavily around 90 pips to 1.3321, currently near 1.3343, during the early Asian session on Thursday.
After nearly three hours of a dinner chat between UK PM Johnson, EU President von der Leyen (VDL) and their Brexit representatives, namely UK's David Frost and EU's Michel Barnier, no clear decision came out, as expected. On the contrary, a senior UK source signaled that large gaps remain between Britain and the UK.
While additional details from the even suggested that a firm decision will be taken by the leaders, relating to the future of the Brexit talks, before this Sunday, EU President VDL mentioned, “We gained a clear understanding of each others´ positions. They remain far apart.”
Read: Brexit update: Very large gaps remain between the two sides
Looking forward, EU Chief VDL’s further comments on what happened in the dinner, likely to roll out during Thursday’s European session, will be the key to watch as this will give hints of the future Brexit talks. While nothing major positive is expected, an assurance of continuation of negotiations can pare the recent losses.
Additionally, the UK’s October month’s data dump and the US Food and Drug Administration’s (FDA) approval of the covid vaccine will also be the key to watch. Furthermore, details of the ECB meeting and the EU summit are an extra burden for the GBP/USD traders to follow.
Technical analysis
Although the quote’s bounce off 21-day SMA, currently around 1.3320, suggest further consolidation of losses, bulls are less likely to return unless witnessing a clear break above the 1.3500 threshold.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.