Forex: The Pound to drop, as the risk of Brexit resurfaced

The pound fell Wednesday in Asia, while the risks of Brexit have again exploded.

The pair GBP/USD lost 0.2% to 1,3098 after having fallen more than 1% in the previous session.

The risk of “Brexit” no agreement surfaced after reports in the Uk have declared that the Prime minister Boris Johnson would change the law to ensure that the transition phase of relations between the United Kingdom and the EU ends as planned on 31 December.

This would leave little time to conclude a trade agreement with the European Union.

USD/JPY was little changed at 109,44 against the u.s. dollar after the publication of data showing that japanese exports fell 7.9% in November compared to the previous year, which is his 12th straight month of decline. Imports have also declined by 15.7%.

The Dollar Index, which tracks the greenback against a basket of other currencies, rose 0.1% to 96,873. The president of the Dallas Fed, Robert Kaplan, has reiterated that interest rates would remain unchanged unless there is a huge change in the outlook for the us economy.

“I have already become aware of my perspectives, we will have a manufacturing low next year, global growth is sluggish, investment, trade rather slow, but with a consumer solid,” said Kaplan in an interview with Bloomberg Television.

“I was afraid that the weakness of business investment and the weakness of the manufacturing infiltrates into other sectors of the economy. We have not yet seen,” he said.

“We have a job market very tight, and there is no evidence that the job market is to do something other than tighten. It is a very good tail wind for the consumer,” he said. “So, unless something does not change, what makes change the image of the job, the consumer will be solid for the next year.”

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