Since Oct. 2017, Pound heads for the most significant weekly drop vs. the dollar.
After two slippery weeks, dollar steadies.
As pound headed for its worst week in more than two years on Friday, Sterling was precariously poised. The secure data helped the dollar arrest its recent slide. The pound hobbled by familiar fears of a chaotic British exit from the European Union.
For the first time in a fortnight, the pound slipped below $1.30 overnight. The sterling was quoted at $1.3022 as worries grow about whether a deal can be secured. There is a hard deadline before December 2020.
Head of FX strategy at National Australia Bank, Ray Attrill thinks that the market is a little bit naïve, considering that a Tory election win preconditions the removal of the fog of Brexit. There were some longs in weak hands that got slipped out.
Pound And other Currencies
After Prime Minister Boris Johnson was re-elected, last week Pound has given up all the gains won. It has slumped 2.3% against the dollar till Monday. It fared even worse against the euro, moving towards the most significant weekly loss since July 2017.
It’s more than three years since Britain voted to exit the European Union in a 2016 referendum. A hard deadline to reach a trade agreement set to December 2020. Johnson’s government made this decision.
Against the Euro Swiss Franc hit to its highest in a month at 1.0881 francs. Impact on it had uncertainty over the prospect. The Swiss franc is most potent against the dollar since August.
Nevertheless, elsewhere the dollar found significant support. Firmer-than-expected manufacturing data and robust housings start this week to halt two weeks of declines against the basket of currencies. The index of the dollar rose slightly to 97.440.