GBPUSD hits another 30-year low

6 July, 2016

While the Pound/Dollar is currently trying to move back towards 1.30, the pair has experienced a really rough previous 24 hours and dropped sharply overnight to its lowest levels in over 30 years below 1.28. The reason for the resumption in losses for the British Pound is being attributed to a decline in investor confidence and shortly follows the headline comments from the Bank of England (BoE) yesterday that there is evidence of the risks identified to a Brexit outcome to the EU referendum already emerging.

I personally also feel that investors are also moving forward when it comes to pricing in the ongoing uncertainty over who will become the Prime Minister of the United Kingdom once David Cameron steps down in a couple of months, the likelihood of further economic downgrades while the UK negotiates its lengthy exit away from the European Union and the resurgence in the possibility that Scotland might be tempted to call its own second referendum in the future as further reasons to explain the ongoing decline in value for the British Pound.   

There is overall a great deal of ongoing uncertainty over the UK economy, which is drastically weighing down on buying sentiment towards the British Pound. With so many different factors basically overwhelmingly weighing on investor sentiment and providing a platform for investors to sell the currency, we are more likely than not going to hit further lows in the Pound/Dollar over upcoming months.


Source link  
BoJ pushes inflation target

The Yen traded slightly lower against the Dollar early on Thursday after the BoJ kept interest rates on hold and pushed the deadline...

Dollar tumbles on healthcare bill collapse

U.S. political turmoil took center stage once again on Tuesday after two Republican senators Mike Lee and Jerry Morgan announced their opposition...

Fed caution pressures Dollar

It has certainly been an eventful week for the financial markets, as comments from central bank heavyweights which fueled monetary policy speculations...


Oil bulls jump on OPEC report

Oil markets saw some life injected back into them today as OPEC members hit 97% compliance in cuts set out by the organisation...

Yen pairs falter on risk appetite

The Japanese Yen has long been the favourite for currency hedging but has suffered in recent weeks as the market throws of negative sentiment...

USD falls on disappointing figures

US ADP non-farm employment change disappointed the market today coming in at 158K (185 exp) leading to a large sell off in the dollar...


Divided Fed keeps markets directionless

Minutes from the Federal Reserve's meeting on 13-14 June showed that monetary policy members were split over the timing...

Gold under pressure as equities & yields rally

Equity investors entered the third quarter with an optimistic attitude. Despite the low trading volumes and shortened U.S. trading session...

WTI Crude Stumbles into Bear Market

Oil's ongoing oversupply woes reached an ear-piercing crescendo during Tuesday trading session as WTI Crude...

  


Share: