Worst Four Days Since June Push Sterling Below $1.23

Sterling slid back below $1.23 on Tuesday as senior officials and investors pointed to the potential for more falls for a market still in shock after Friday’s 10-percent flash crash.

The past four days for the pound are now its worst since the aftermath of the vote to leave the European Union in June and Bank of England policymaker Michael Saunders warned a “bumpy” Brexit could sharply reduce British economic growth.

“Given the scale and persistence of the UK’s current account deficit, I would not be surprised if sterling falls further, but I am fairly agnostic as to whether any further depreciation is likely,” Saunders told lawmakers in a written submission.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.