The British Pound fell significantly today following comments by US President Donald Trump that the Brexit could affect trade relations with the United States. At the same time, British Prime Minister Theresa May faces strong opposition within her own party and from opposition parties to approve the Brexit deal.
Sterling hit its lowest level since mid-month at 1.2732 against the US dollar, and hit its lowest level against the euro, with the EURGBP hitting its highest level since November 22 at 0.8888.
May begins tomorrow a tour within the United Kingdom to rally support for its agreement with the European Union on the departure of Britain before the date of voting in parliament scheduled for the eleventh of December.
On the other hand, the US dollar rose to its highest level in two weeks as trade tensions between the United States and China continued with a new threat from President Trump on imposing more tariffs on Chinese goods.
The dollar index continued to trade above the uptrend line that we mentioned earlier to reach 97.23 levels, and markets are waiting for Trump's meeting with the Chinese president on the sidelines of the Group of 20 summit in Argentina this weekend.
The euro was trading in a tight range during the day as the Italian government continues to stick to the budget deficit for 2019, sending EURUSD its lowest level against the US dollar since November 15 at 1.1305.
