Pound to face renewed pressure

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After falling sharply last Friday against the US dollar, the British pound has gained a little momentum today recovering some of its losses.

At 7.55pm (GMT) the pound was trading at $US1.4275c up 0.35 percent from Friday’s close.

With Brexit hanging over its head with the possibility of losing 100,000 jobs, the pound is expected to face renewed pressure in the run up to the referendum in June.

To add to the woes, Indian steel manufacturing company Tata Steel has decided to shut up shop in Britain after revealing losses of more than £1m per day which has also threatened to hit the economy and cost many jobs.

The English currency enjoyed a good run last week on the back of US Fed president Janet Yellen’s comments that the central bank would move slowly on interest rates and was very data dependent.

This was all thrown into doubt just a few days later with the release of a solid non-farm payrolls report from the US which showed the US economy is indeed on the road to recovery and Yellen may have spoken to soon.

The latest minutes meeting from the Fed on Wednesday may show just where they stand as far as the economy goes and we may see further weakness in the pound.

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