© Reuters. Pound falls against greenback amid fresh Brexit concerns
Investing.com — The pound pulled away from a one-week high against the US dollar on Thursday, according to reports the UK’s EU-exit negotiations between the United Kingdom and the European Union had stalled, the further demanding the British Prime Minister, Theresa May, the ability to complete a deal.
GBP/USD was GMT, down 0.57% at 1.3145 at 10:00 am ET (14:00), which reached a one-week high of 1.3266, earlier in the day.
Sterling was hit after EU negotiators, Michel Barnier, announced on Thursday that Brexit had discussions in a «cul-de-SAC.»
Barnier added that the UK, the EU was ready to had said, to indicate how much the nation should pay fees in exit.
British PM Theresa May, the Parliament was told on Monday that there is a two-year transition period following Britain’s withdrawal from the European Union.
Can also said that preparations were in progress, in the case of the UK and the EU were not able to reach a deal on their future trading relationship.
Meanwhile, the greenback strengthened after the U.S. labor Department reported Thursday that initial applications were on unemployment assistance stronger-than-expected 243,000 in the last week.
A separate report showed that producer prices increased by 0.4% in September, in line with expectations. Core producer prices, which exclude food and energy, also rose 0.4%, beating expectations of a 0.2% upward trend.
The data came a day after the minutes of the Federal Reserve September, showed monetary policy meeting that policymakers remain divided on inflation.
Several politicians believe that additional tightening will depend on upcoming inflation data. However, most Fed members said they feel that a further interest rate increase this year «was likely to be justified,» the report showed.
Market participants now look ahead to the eagerly anticipated US consumer price inflation data set to be released on Friday.
Sterling was also lower against the euro, with EUR/GBP up 0.37% to 0.9004.