Sterling hits fresh new lows
- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- August 24, 2017
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Sterling fell to a new two-month low against the dollar today as the lack of any major economic data encouraged investors to add bets against the British currency.
We have been quite bearish about the British pound for some time and I think this trend is justified given its worsening fundamentals such as a widening current account deficit.
The government is striving to move forward the formal discussions on leaving the European Union with a series of position papers that have outlined potential compromises over some of the issues likely to block progress this year.
Britain on Wednesday outlined several escape routes from the “direct jurisdiction” of the European Court of Justice after Brexit, one of Prime Minister Theresa May’s key aims in talks to unstitch 40 years of EU membership.
Morgan Stanley strategists said the British economy may lose growth momentum as the government’s failure to define its Brexit target creates investment uncertainty.
The second-quarter U.K. GDP data released this morning showed the forecast on par with expectations, analysts are focused on how negotiations with the European Union progress in the coming days.
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