Worries about a no-deal Brexit and the global trade war are weighing on the pound and the euro, respectively, Monday morning. The latest comments by President Trump and Chinese officials have investors worried that the  trade war between the two countries will be more long term than short term.

Pound takes a dive

After the U.K. trade minister publicly expressed his concern that a no-deal Brexit was more likely than not, the pound is reaching 11-month lows against the dollar.

International Trade Secretary Liam Fox said there is a 60% likelihood of the U.K. not reaching a deal with the E.U. prior to its exit in March. Outlining the global impacts of a no-deal is one way the U.K. is increasing pressure on the E.U. to come to a compromise.

GBP/USD sat around 1.30 early Monday and then fell to the mid-1.29s on the comments. It then dropped further to 1.292. The pair was last at these levels in September 2017.

While the majority of the dip is due to pound weakness, the dollar is also stronger across the board.

China says it can endure long trade war

An editorial by the Chinese government in state-run media has investors concerned that this is just the beginning of a trade war between the U.S. and China.

Beijing said it is prepared for a “protracted war” and doesn’t fear the short-term economic fallout. The response comes after President Trump spent the weekend on Twitter explaining why he has the upper hand in the trade war while glorifying tariffs.

“Tariffs are working far better than anyone ever anticipated. China market has dropped 27% in last 4months, and they are talking to us. Our market is stronger than ever, and will go up dramatically when these horrible Trade Deals are successfully renegotiated. America First…….” Trump tweeted.

The dollar gained across the board Monday morning, pushing the EUR/USD pair from 1.156 to 1.153.

USD/JPY climbed up to 111.47 after hitting as low as 111.1 Friday.

Light on data

The absence of economic data Monday has the currency pairs moving with geopolitical sentiment. In fact, a lack of data throughout the rest of the week could mean this trend will continue over the next few days.

Actually, with issues like Brexit and the trade war, we’ll probably see this as the new norm well into 2019. The U.K. is set to depart the E.U. in March 2019 and, if the latest comments by China mean anything, the trade war will be having an impact on the pairs for quite a while.