The Pound is losing ground to the Euro and the Dollar during early Friday trading, following remarks made by the British Prime Minister, pointing to the strong possibility of the UK and the EU failing to strike a post-Brexit trade deal. The EU had also signalled increased readiness for such a scenario by publishing on Thursday a list of emergency measures to be adopted should there be no agreement. Despite the recent sterling losses, the spot forex market is still pricing-in an outcome entailing some form of trade deal between the parties, perhaps interpreting the latest posturing from the two sides as negotiating tactics.
However, every day that passes without positive developments means the risk level for sterling traders continues to rise with a correspondent growth in downside for the currency.
