Sterling's Weak Outlook Weighs Heavily
With only brief positive incursions, the Pound Sterling continued its slide versus the Euro as the ongoing negotiations for a Brexit agreement sideline potential investors. On Tuesday, the Pound had fallen to a 10-year trough against the common currency and was only able to recover a portion of lost ground in today's trading. This month alone, Sterling has lost more than 3% and is poised to record a fourth straight loss. One currency strategist in Switzerland pointed out that investors were remaining clear of the Pound, despite the fact that it looks good on a valuation basis.
As reported at 11:14 am (BST) in London, the EUR/GBP was trading at 0.9242 Pence, down 0.22% and moving off the session low of 0.92366 Pence; the high for the trading day currently stands at 0.92700 Pence. The GBP/USD is higher at $1.293, a gain of 0.07%.
Markets are hopeful that the Pound could make some sort of recovery inn October when the party conference season begins. FX traders will be keen to discover any internal disagreements within the Conservative party. Until then, however, the slow pace of progress in the Brexit negotiations is discouraging to Sterling bulls, against both the Euro and the Dollar, but also in a broader sense.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment