Pound continues its slide on no-deal Brexit fears

Galtero Lara
Agosto 9, 2018

Sterling fell as much as 0.31 per cent to $1.2894, nearing the previous low of $1.29 which it fell below on August 31, 2017, according to Reuters.

On Monday it had reached $1.292.

The pound slipped to the lowest level against the euro in nearly nine months amid growing concern that the United Kingdom could end up leaving the European Union with no agreement for future economic ties.

Andreas Georgiou, investment analyst at forex trader XM, said the "battered pound" was suffering as "the Brexit risk premium on the pound appears to be rising - with the latest cautious turn by the BoE likely amplifying the negative sentiment".

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Connor Campbell, a marketing analyst at SpreadEx, said in an email on Thursday morning: "The fears of a "no deal" Brexit have really gathered steam in the last few sessions, a snowball effect stemming from Mark Carney and Liam Fox's warnings either side of the weekend".

Connor Campbell, analyst at SpreadEx, said while t he pound's drop had boosted the FTSE, it was "causing trouble for anyone from the United Kingdom about to go on their summer holidays".

Bank of England Governor Mark Carney and the UK's International Trade Secretary, Liam Fox, have both highlighted the rising likelihood of a no-deal Brexit in recent weeks, warning that Britain could crash out of the European Union without any deal on its future trading relationship with the bloc.

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