Sterling slides below $1.29 as Brexit sell-off worsens

Peter Hargreaves says Britain will get a free trade deal
Credit
Jay Williams

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.

Traders said there was no obvious catalyst other than growing anxiety over the lack of progress on Brexit before a series of meetings between the European Union and Britain starting next month.

Sterling/dollar three-month implied volatility - a gauge of how volatile traders expect a currency to be - this week spiked to its highest since early March.

The Brexit related uncertainty has been voiced repeatedly over the course of past few days with the Bank of England Governor Mark Carney sending a warning signal to business and the financial markets on Friday last week saying that the uncertainty related to Brexit negotiations is "uncomfortably high" and the UK Trade minister Liam Fox said on Monday that a no-deal Brexit has a 60 percent chance of happening.

Sterling slid to $1.2842 in mid-morning trading, its weakest since 25 August 2017.

More news: NASCAR Cup Ford Mustang ready to race

"Some are thinking in the market that the BoE raised in order to given them ammunition to cut rates in the face of a no- deal", said Neil Jones, head of hedge fund FX sales at Mizuho Bank.

The Pound Euro (GBP/EUR) exchange rate remains close to its worst levels in a year, reflecting the fact that a no-deal Brexit is seemingly a distinct possibility. "The next move [by the central bank] could be a cut rather than another hike".

"We remain bearish on the pound in the short term until the Brexit mess is out the way and look for the currency to enter a US$1.27-1.28 range before the leaders' summit in September", said Nomura strategist Jordan Rochester. The pound has lost more than 10 per cent since April and is down nearly 15 per cent since the Brexit vote in June 2016.

A lull in domestic data has meant that the Pound cannot gain any traction, but an assortment of data tomorrow, including quarterly GDP growth, could give Sterling a sorely-needed lift. It had a similar slump against the euro, down to a nine-month low of €1.11.

Related News:

  • Tiger Woods roars back into contention at USPGA Championship

    Tiger Woods roars back into contention at USPGA Championship

    To say Brady Brown of Robinson, Illinois came prepared with his attire for this PGA Championship would be an understatement. But he needed 18 putts on the back nine for a total of 30, and the difference between being closer to the lead.
    New Look Foxtel Set To Dent Revenue & Subscription Declines

    New Look Foxtel Set To Dent Revenue & Subscription Declines

    Revenue for the global media group increased 11% to $9.02 billion, while EBITDA grew 21% to $1.07 billion. Digital revenues represented 30% of News and Information Services revenues compared to 26% a year ago .
    Villa complete signing of playmaker John McGinn from Hibernian

    Villa complete signing of playmaker John McGinn from Hibernian

    McGinn shot to prominence in a three-year spell at Easter Road, where he played 136 times in all competitions and scored on 18 occasions.
  • Man Utd: Jose Mourinho finds some harmony at last - Dublin

    Man Utd: Jose Mourinho finds some harmony at last - Dublin

    He got that from his team's display at Old Trafford, from the way they started so well to how they saw the game out at the end. Claude Puel, the visiting manager, said: "It was a shame to concede this goal at the beginning of the game".
    Star Trek 4 In Trouble?

    Star Trek 4 In Trouble?

    Clarkson on board as the film franchise's first female director and Black Panther's Danai Gurira expected to have a key role . Leonard "Bones" McCoy in the Kelvin timeline Star Trek films, responded to Spiner, taking the overly-literal approach.

    Sarri learns lessons from Chelsea's opening win at Huddersfield

    Of the three in midfield, Ross Barkley on the left looked the least effective. "I hope in this month to improve the team". But the Blues were clearly the better side on the day despite not kicking into gear under Sarri just yet.
  • Another Upset: Greek teen Tsitsipas outlasts Anderson in Rogers Cup semifinal

    Another Upset: Greek teen Tsitsipas outlasts Anderson in Rogers Cup semifinal

    Today was an absolute pathetic match I don't even think he played well'. "I don't think he played well". Tsitsipas struggled with a first-serve percentage of 47 per cent, well below Zverev at 70 per cent.
    CBA and World Bank collaborate for DLT bond issuance

    CBA and World Bank collaborate for DLT bond issuance

    The team at CommBank has carried out intensive research and analysis to ensure that the bond issuance is carried out smoothly. The initiative is also part of the World Banks' mission to stop poverty using innovative technologies like blockchain.
    Why NBA, USA Basketball Reportedly Were ‘Blindsided’ By New NCAA Rules

    Why NBA, USA Basketball Reportedly Were ‘Blindsided’ By New NCAA Rules

    Enforcement: The NCAA is revamping its procedures for investigating and ruling on big cases that involve rules violations. Last month, Commissioner Adam Silver said that the league will likely amend its age-eligibility rule.
  • Airline worker steals empty plane in Seattle, sparking security scare

    I was kind of hoping that was gonna be it". "I want to share how incredibly sad all of us at Alaska are about this incident". Two F-15 fighter jets took to the air from a base in Portland, Oregon, and were on the scene within minutes.
    Rocket fault delays the launch of Nasa’s solar probe

    Rocket fault delays the launch of Nasa’s solar probe

    It will travel about 4 million miles from the sun's surface, seven times closer than any spacecraft before it. The probe is about the size of a small auto and weighs a mere 635 kg.
    Monster Hunter World is One of Steam's Biggest New Releases in 2018

    Monster Hunter World is One of Steam's Biggest New Releases in 2018

    With the weekend coming up, it'd be a safe bet to say that those numbers are about to shoot way up. For further information visit the official Steam listing here.


Most liked

Japan Economy Returns to Black After First Dip in Two Years
Japan has repeatedly said it prefers multilateral trade negotiations, which put it at loggerheads with the United States. But the country is likely to struggle to grow strongly in the coming quarters.

Moderate salt intake is not harmful to health, study finds
China is the only country in their study where 80 per cent of communities have a sodium intake of more than five grams a day. An increased cardiovascular risk was only observed in communities where the average intake was greater than 5 g/day.

'Suicidal Male' Steals Plane And Crashes After 'Unauthorized Takeoff' From Sea-Tac
Video has surfaced appearing to show the hijacker successfully executing the maneuver, some time before his fatal crash. At one point, he apologizes and says he is a "broken guy" with "a few screws loose". "I don't know man", Rich said.

Greek cat sanctuary hiring caretaker to live on island, supervise 55 cats
The position requires you to care for all 55 cats, feed them, and distribute their medications. This is surely any cat lovers dream job - and there's still a chance to apply.

England v India: second Test, day two
But it was new-ball partner Mohammed Shami who made the breakthrough when Keaton Jennings (11) was lbw playing across the line. Pope's wicket left the hosts on 77 for three, with two experience batsmen at the crease in Root and Jonny Bairstow.

President Trump Thanks Kanye West For His Support On ‘Jimmy Kimmel Live!’
He continued, "I mean you so famously and so powerfully said 'George Bush doesn't care about black people . Johnson had been serving a life long sentence for drug crimes when she was released from prison in June.

Simona Halep dominates Ashleigh Barty to reach the final — WTA Montreal
Halap broke twice more to open the second set and completed the victory over the Australian in 71 minutes. "I played some slices". With the win Stephens advances to her second consecutive Rogers Cup semifinal after falling to Caroline Wozniacki previous year .

Mexico says must finish NAFTA talks with U.S. before Canada rejoins
USA negotiators "haven't had market access conversations with Canada of any substance", the Hagstrom Report quoted Doud as saying. The peso advanced as much as 0.2% to 18.4130 per USA dollar, trading near a three-month high in afternoon trading.

Kylie Jenner hosts Friends & Family for her 21st Birthday
The magazine said she has amassed a fortune of 900 million United States dollars (£685 million) through her cosmetics business. Earlier in the day, the reality TV star showed off the birthday present Scott had gifted her: a classic, white, Rolls Royce .

Teams heading out to help ailing Northwest orca
National Oceanic and Atmospheric Administration biologists and vets was also able to take blow samples from J50 exhaling. University of Washington scientist Deborah Giles said she was heartbroken for what is happening with the mom and child.

Rents to soar 15% as battered landlords pull out, says RICS
With houses in Northern Ireland more affordable than elsewhere, people continue to want to buy their own home. The decrease, coupled with an increase in demand from tenants, is expected to lead to rising rent costs.

Nobel-winning writer VS Naipaul dies aged 85
His 1961 novel, A House for Mr Biswas , is regarded by many critics as one of his most seminal works. Reports out of the United Kingdom quotes his wife, Lady Naipaul, as confirming his death.

Australians Pay Tribute to Golfer Jarrod Lyle, the 'Larrikin'
"We'll be taking him closer to home in the next couple of days so he can finally leave the hospital". Today we lost a great man who's life off the course is one we should all try to emulate".

Discord Launches Game Store Beta
However, the new store will be different from Steam's , which has become a platform where nearly anyone can sell a game. Nitro was our attempt at cosmetics, now we're adding games to that subscription and building a retail store too".

Ben Affleck & Jennifer Garner May NOT Get Divorced?? WTF??
Garner's next film, the action movie Peppermint , opens on September 7. Are they not?' And that's true in the reverse, as well. In other words, they'll still be married.