Pound
sterling fell more than one percent against both the US dollar and the euro on Tuesday's
trading session, as uncertainty over Brexit returned.
The
losses in the value of the British currency came after a recent report mentioning
that the British government intentions to make the issue of extending the
transition period after the Brexit is illegal.
As
of 10:03 GMT, the pound slumped against the U.S dollar by one percent at 1.3198.
Against the euro, it also slipped by same percentage to reach 1.1840 after
opening at 1.1833.
The
BBC and other local media reports revealed that Prime Minister Boris Johnson
would add a review of the Brexit bill, officially known as the Withdrawal
Agreement Bill.
The
review would rule out any extension of a transition period after December 2020,
and is one of Johnson's attempts to speed up the process of leaving the EU.
The
transition period is important as it represents the period during which the EU
and the Kingdom can negotiate a trade deal.
During
the transition period, EU laws remain applicable to the United Kingdom as if it
were a member state of the bloc, but it is no longer represented in EU
decision-making bodies.
At
present, there is an option to extend the transitional period for up to two
years once the parties agree, as the United Kingdom is due to leave the EU on
31 January 2020.
Regarding
economic data from the U.K., it showed a stability at 3.8 percent in the
quarter ended October, and the average earnings for the same period retreated
from 3.7 percent to 3.2 percent.
The dollar index, which
tracks the green currency’s movements versus a basket of major currencies, slipped
to 96.94, compared to the session’s open price at 97.11.