Pound to remain pressured
Open demo account
FOREX trading implies serious risk and can result in the loss of your invested capital

Financial and commodity markets analytics

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.

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.


The world of trading has no boundaries

IMPORTANT: Please be informed, that our services are available for Professional Clients only.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.