GBP Falls on Brexit Developments

The British Pound (GBP) declined on Tuesday as negotiations between the UK government and the European Union are once again seeing complications.

This is the fifth consecutive session in decline for the GBP, marking its longest downward trend since May.

The UK Prime Minister, Boris Johnson, has reportedly threatened to withdraw from talks with the EU without reaching a new trade agreement, Bloomberg reported.

In addition, markets are now expecting the Bank of England (BoE) will cut interest rates by 12 basis points in May to a negative territory.

It was previously expected that rates would remain above zero until September 2021.

The GBP/USD is trading lower by 0.93% for the day 1.3044, after closing at 1.3166 on Monday.

The pair went as low as 1.3010, while its highest level was at 1.3173.