Investing.com – The pound fell sharply against the dollar on Tuesday as Prime Minister Boris Johnson raised fears of a no-deal Brexit after warning that Britain would end negotiations if there was no progress towards a deal by mid-October.
It fell 1.35% to $1.2988.
Johnson said a deal needed to be reached by the October 15 deadline for the European Council to meet or warned Britain would walk away from the negotiating table.
The tough talk is feared to be more than just a negotiating tactic, as Britain has angered EU members by unveiling plans to introduce a law aimed at undermining the withdrawal agreement, which has been signed into law and sets out the terms of Britain’s exit from the EU.
The internal market bill, which aims to establish common rules applicable to the whole of the UK, may clash with the terms of the withdrawal agreement, which requires Northern Ireland to follow EU rules to avoid a hard border with the Republic of Ireland after Brexit.
Britain’s move appears controversial as talks resume on Tuesday with Michel Barnier, the EU’s chief negotiator, who arrived in London. The EU has said it will be ready for a no-deal Brexit when the transition period ends on Dec. 31.
“No deal is the most likely and only outcome of the negotiations,” warned former European Commission President Jean-Claude Juncker.
Disclaimer: You are advised that the data contained in this website may not be current or accurate. All CFD (stock, index, futures) and foreign exchange prices are not provided by exchanges but by market makers and as such prices may not be accurate or may differ from actual market prices, which means that prices are indicative only and are not suitable for trading purposes. Accordingly, Fusion Media will not be liable for any trading losses you may incur as a result of the use of such data.
Fusion Media or anyone associated with Fusion Media shall not be liable for any loss or damage caused by reliance on the information contained in the data, quotes, charts and buy/sell signals contained within this website. Please fully understand the risks and costs associated with trading in the financial markets, which is one of the riskiest forms of investment.