The pounds 3 day winning streak came to an end today on the back of weak economic growth figures which has investors nervous in the lead up to Brexit.
At 9.04pm (GMT) the local currency was trading at US1.4533 down 0.33 percent from yesterday’s trade.
Statistics out today showed UK quarterly growth slowed to 0.4 percent from 0.6 percent for the last quarter of 2015 marking its lowest level since 2012.
Although the pound reacted to the currency by pulling back, economic growth has not been the main driver of the currency according to Manuel Oliveri, a foreign-exchange strategist at Credit Agricole
"UK growth conditions have not been the key driver of the currency this year," he said.
"Everything has been about Brexit fears." he added.
In the lead up to Brexit Mr Oliveri noted that the pound will become more volatile as the date comes nearer and traders should brace themselves for volatility,
"Sterling has been a bit volatile, and we believe the currency should become more volatile" due to concerns over Brexit and speculative short positioning, which is "quite elevated," he said
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 58% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 58% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|