The pound falls after European Commission President Jean-Claude Juncker warned bloc legislators that Brexit’s risk without an agreement is now “palpable”. Sterling fell 0.2% to $ 1.2479 after his words, falling from a maximum close to two months; he was more resistant to the euro, trading at 88.59 pence.
Juncker said that the so-called Backstop plan, the issue of the Northern Irish border, remains the main stumbling block, and demanded that the UK submit its proposals for its resolution in writing as soon as possible. EU chief negotiator Michel Barnier said no one should underestimate the damage to a tough Brexit.
The two-month pound/dollar reversal risk, which covers the Brexit deadline of October 31, rose to – 1.0300, signaling the smallest bearish sentiment against the UK currency since early August.
In London, a trial began on Tuesday on the legality of the suspension of parliament by Prime Minister Boris Johnson: a Supreme Court judge asked Johnson’s lawyer to provide a written statement outlining his plan if the judges ruled against him.
The pound received a further blow from the data on the consumer price index, which came out the day before when the Bank of England is expected to maintain interest rates.