Forex – Pound Falls Below $1.29 for First Time in a Year

© Reuters. Pound falls to 1-year low against dollar amid Brexit concerns – The pound fell below $1.29 for the first time since August 2017 on Wednesday, amid worries that the before exiting the bloc in March of next year.

At 6:05 AM ET (10:06 GMT), fell 0.27% to 1.2903, recovering the 1.29 handle after hitting an intraday low of 128.93.

Sterling also weakened against the euro, hitting its lowest level since November. was last up 0.28% at 0.8986, not far from an intraday high of 0.8992.

The pound has been under pressure this week as British trade secretary Liam Fox claimed that UK was likely to leave the EU without a deal, stoking worries that trade chaos would harm the British economy.

Cable’s strength occurred on Wednesday despite little movement seen in the dollar against major rivals.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 95.03.

Investors had been investing in the dollar as a safe haven asset while trade tensions between China and the U.S. continued to mount.

The U.S. Trade Representative’s office said late on Tuesday that the U.S. would begin collecting it imports from China later this month.

The move is the latest by Washington to pressure China into negotiating trade concessions after it imposed tariffs on $34 billion of goods in July, prompting pledges from China to retaliate.

However, analysts pointed to released early on Tuesday, suggesting the world’s second largest economy had yet to be derailed by the tit-for-tat.

Chinese exports jumped in July, while imports surged , beating expectations and providing some calm despite the fact the first round of U.S. tariffs were implemented last month.

Contrary to its trade against the pound, the dollar was weaker against the yen, with losing 0.42% to trade at 110.92 ahead of expected bilateral trade talks between the U.S. and Japan in Washington on Thursday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.