- Posted by currencies in Rate Alerts
- June 28, 2019
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Please see this morning’s exchange rates listed at the bottom of the article. The rates are there for indicational purposes only. For live accurate prices please contact us.
The British Pound fell to a 5-month low this morning as investors continued to fear the possibility of a no-deal Brexit should Boris Johnson win the Conservative party leadership race.
Against the euro the British currency fell 0.2%, to its weakest level since Jan. 11. Sterling has now lost 5% of its value versus the single currency since the start of May, although losses during the last week have partly come as a result of broad euro strength.
Versus the dollar, the pound is down 0.6% for the week.
Investors have been reluctant to take big positions in the pound amid the Conservative party leadership contest, which should end with a new prime minister in place by the end of July.
Johnson, the frontrunner, has said Britain will leave the European Union on Oct. 31 deal or no-deal, but he has also said there is only a one in a million chance of leaving without an agreement in place.
Sterling was unmoved by GDP data released this morning, which showed the British economy grew 0.5% in the first quarter, in line with expectations.
Some say that the pound is likely to remain under pressure until there is clarity around Brexit.
As long as a no-deal Brexit remains a possibility, that should keep the pound below the psychological 1.30 mark against the U.S. dollar.