Pound Falls To 5 Month Lows
- Posted by currencies in Bank of England, Bremain, Brexit, Currency, Dollar, Economy, EUR, GBP, Prime Minister, Sterling, UK, Uncategorised
- June 28, 2019
- No Comments
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.
Leave a Reply