Session lows for sterling

Cable is down 32 pips to a session low of 1.2300 as it threatens to trade with a 1.22-handle for the first time since May 28.

The potential re-lockdown in Leicester, Brexit woes and BOE monetary financing are among the causes. GBP/USD had risen as high as 1.2390 at the start of European trade but gave it all back in the past few hours.

Session lows for sterling

On the Brexit front, in-person negotiations restart today in Brussels and run until July 3. Tomorrow is the deadline to extend the transition period beyond Dec 31.

The tone isn't great to stat with Boris Johnson saying yesterday that the UK was ready to quit on 'Australia terms' if there is no deal.

Another driver for the move is the big breakout in EUR/GBP today to a two-month high.


Looking ahead, we're going to be getting a heavy dose of Brexit headlines for the next three days and then continuing over the subsequent 8 weeks. Here's a cheat-sheet (h/t @AWMCheung).

Brexit timeline cheatsheet