The British pound came under further pressure today before recovering later in the trading session on the back of disappointing local data and a possible leadership challenge to the Prime Minister.
At 1.18pm (GMT) the British currency was trading at $1.2830 after reaching a low of $1.2774 earlier in the day.
GDP figures from the UK hit the market today at 0.3 percent, bringing the yearly total to 1.7 percent which shows the economy is still nervous over the possibility of what Brexit will bring.
For the time being it looks as though the pound will remain subdued with further losses expected until the British government deliver a clear cut plan to their European counterparts on their intentions surrounding Brexit
“It depends on how sterling trades today and over the course of the next couple of days, but we could be at the worst level for sterling ever,” said Jeremy Cook, chief economist at currency firm World First.
In a startling development, there are now rumors that ministers in Theresa May’s own government are secretly trying to replace her as Prime Minister in the Run up to the conservative party conference on October 1st.
Should they prevail in ousting May, the British pound may see a mini flash crash as it did after the Brexit vote,
“We think the pound could struggle versus the euro into October, when we’ve got the Tory party conference and the threat of Theresa May being ousted” noted Kathleen Brooks, research director for City Index.
Risk warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, your level of experience and preparation 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.|