GBP in Free-Fall as EU Threatens UK with Legal Action

GBP is fast on track to its largest weekly fall in over 6 months, following European Union’s legal action threat as a response to UK’s attempt at Brexit agreement override.

The European Union has stated that unless the UK drops its new legislation by the end of the month, the bloc will pursue legal action. 

The bill, published Wednesday, overrides the key terms of the withdrawal agreement, among which: outlining common rules across the whole of the UK, including England, Northern Ireland, Scotland and Wales. The bill has been prepared following Boris Johnson’s speech several days back, where the PM gave the EU a deadline of October 15th to secure a trade deal. 

With both sides sticking to their guns, investors worry a hard Brexit may be on the horizon.

As a result of the news, GBP/USD has already shed 1.56% and is expected to continue its downfall. 

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