Breaking News: GBP/USD falls sharply on reports May to reject Barnier's Irish offer

Yohay Elam FXStreet

According to the Times, UK Prime Minister Theresa May is set to reject the improved offer by Chief EU Negotiator Michel Barnier for a solution on the Irish border. Maintaining an open border between the Republic of Ireland and Northern Ireland has been one of the thorniest issues in the Brexit negotiations.

Update: a British government source welcomes the efforts by the EU but states that the UK cannot accept that Northern Ireland will be separated off the UK Customs Territory.

The GBP/USD dropped to a low of 1.3098 from the highs close to 1.3200. Support is seen at 1.3080 and 1.3045. Resistance is at 1.3170. The pair stabilized after the initial drop.

Britain does not want a special status for Northern Ireland outside the UK or a border on the Irish Sea. May's ruling Conservative Party relies on the support of the Northern Irish DUP. The Conservative Party holds its annual conference from September 30th to October 3rd.

The report from the times comes a short time before European leaders including May convene for an unofficial summit in Salzburg, Austria, with Brexit being high on the agenda.

GBP USD falling on May reportedly rejecting Barnier's Irish offer

Earlier, the GBP/USD jumped to new highs on higher than expected inflation numbers. UK inflation advanced by 2.7% YoY, above 2.4% expected and raised expectations for a faster pace of rate hikes by the Bank of England. Concerns about the new US tariffs on China have been in play earlier as well.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD hits fresh 2026 lows near 1.1570

EUR/USD adds to Monday’s heavy losses and reaches new yearly lows around 1.1570 on Tuesday. The pair’s deep pullback comes as the US Dollar extend its strong bounce, always propped up by the intense flight-to-safety environment amid the deteriorating geopolitical landscape in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold meets buyers around $5,000, remains under pressure

Gold comes under renewed and marked selling pressure on Tuesday, dangerously approaching the critical $5,000 mark per troy ounce, reversing at the same time four consecutive daily advances. The yellow metal’s bearish tone comes on the back of the increasing demand for the Greenback and investors’ repricing of Fed rate cuts.