GBP/USD drops below 1.3320 on renewed no-deal fears
|- GBP/USD fell sharply on latest headlines surrounding UK-EU trade talks.
- UK PM Johnson says substantial and important differences remain.
- US Dollar Index stays in the red below 92.00.
The GBP/USD pair came under renewed bearish pressure and dropped to a daily low of 1.3317 following the latest headlines surrounding the EU-UK trade negotiations. As of writing, the pair was down 0.26% on the day at 1.3320.
No-deal fears weigh on GBP
Citing an EU diplomat, Reuters reported on Friday that EU ambassadors called upon the European Commission to present contingency measures for a no-deal urgently. Additionally, British Prime Minister Boris Johnson noted that substantial and important differences remain to be gapped in negotiations and said that the UK can prosper with or without a deal.
These comments caused GBP/USD to lose nearly 40 pips in a matter of minutes. Furthermore, the UK's FTSE 100 Index lost traction to reflect the cautious market mood and was last seen losing 0.5% at 6,331.
On the other hand, the US Dollar Index is staying relatively quiet on Friday, allowing GBP/USD to limit its losses for the time being. There won't be any macroeconomic data releases from the US in the remainder of the day and the US stocks markets will close early due to the Thanksgiving Day holiday. At the moment, the DXY is posting small daily losses at 91.97.
Technical levels to watch for
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