Citing city sources, Sky News reports that Bank of England (BOE) Governor Andrew Bailey has told banks to step up plans for the UK to leave the European Union (EU) without commercial agreement.
This comes as UK and EU trade negotiators launched the fourth round of post-Brexit trade agreement talks on Tuesday via video conference on Tuesday. The fourth round will last four days, as the two parties try again to conclude a trade agreement.
Note that late June is the deadline for the UK to request more time for talks, and the two sides are expected to take stock of progress to date.
On the above report, the GBP / USD saw a rapid decline to 1.2570 before quickly returning to the familiar range of 1.2585. The spot is traded with gains of 0.30% on a daily basis.