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.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group Holdings Limited, a company registered in Cyprus and regulated by CySEC. Please familiarize yourself with the Terms of Business through the link. Click "Cancel" to remain on this page.|