On 8 September, GBP/USD lost 1.36% or 179 points, owing to the sudden crisis in the Brexit deal talks. With the rumors about the changes made to the Internal Market Bill circulating on the sidelines of Brexit talks on September 7th, it became publicly known that the Boris Johnson Conservative U.K. government was going to issue a new edition of the Internal Market Bill as a backup plan reserved for a no-deal Brexit on Wednesday, September 9th. The British government has even acknowledged that these changes "break international law in a very specific and limited way." In response, the EU threatened the U.K. with trade sanctions in case the new agreement was not withdrawn.

In response to such grim prospects in Brexit talks, GBP/USD continued slipping down through Thursday, 10 September, having fallen as low as 1.2773. With little economic data coming from the U.K. this week, there is limited positivity for sterling to count on; therefore, a further decline to 1.2689 is the likeliest near-term target.

As of the start of Friday's trading day, GBP/USD recovered some of its Thursday's losses, climbing as high as 1.2763, but then lost most of the gains and descended to 1.2725. On Thursday the pair lost 1.52% or 228 points, which is the largest loss since the 19th of March.

The Brexit deal is currently the main focus in the GBP/USD market and will continue to be the most important factor in the pricing of the pair at least until October 15th, which is the last day set by Boris Johnson for signing a trade deal. If the deal is not signed by then, the pound could see further losses against the greenback and other major currencies.

The above content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. The trading of commodities, cryptocurrencies and currencies involves significant risk. Prices can fluctuate on any given day. Because of such price fluctuations, you may gain or lose the value of your assets at any given moment. A cryptocurrency/currency may be subject to large swings in value and may even become absolutely worthless. There is always an inherent risk that losses will occur as a result of buying, selling or trading anything on the market. Cryptocurrency trading has specific risks, which are not shared with other official currencies, goods or commodities in a market. Every user has to carefully assess whether his/her financial situation and tolerance for risk is suitable for buying/selling/trading cryptocurrency.

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