Breaking: GBP/USD tumbles below 1.29 as EU set to slap legal action against the UK
|European Commission President Ursula von der Leyen will make a statement on Brexit shortly, in which she is set to announce legal action against the UK following the approval of a law that violates the Brexit Withdrawal Agreement.
Earlier, Reuters reported that London and Brussels failed to achieve a breakthrough in talks about future relations. State aid is one of the stumbling blocks, with the bloc desiring broader rules than Britain is willing to accept.
GBP/USD is falling toward 1.2860, down from the daily high of 1.2950. Support is seen at 1.2810 while resistance is at around 1.29.
Update: Cable has been extending its falls and hit a new low of 1.2842 at the time of writing.
Separately, Markit's final Manufacturing Purchasing Index for September was downgraded to 54.1 from 54.3 originally reported.
Pound/dollar rose earlier on hopes that the US Congress would agree on a new stimulus bill. The optimism about lawmakers' progress pushed back concerns about a contested election following the presidential debate.
See 2020 Elections: How stocks, gold, dollar could move in four scenarios, nightmare one included
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