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Bloomberg
The pound tumbled to a one-month low after UK Prime Minister Boris Johnson told German Chancellor Angela Merkel a Brexit deal is impossible under terms the EU demands.
Dimming prospects of an accord between Britain and the EU sent sterling sliding against all of its major peers. Further souring the mood, European Council President Donald Tusk accused Johnson of playing a “blame game“ in a comment on Twitter.
The pound fell as much as 0.7% to $1.2205, the weakest level since September 4. Strategists surveyed by Bloomberg estimate it would plunge to $1.11 — the weakest level since 1985 — if the UK left the EU without a divorce deal in place. Many of them say an extension of negotiations is more likely.
“The last trading weeks have been one big highlight of how fragile the rally in the pound
was over August and September,†said Lars Merklin, a strategist at Danske Bank A/S.