Does More Pain Lie Ahead For the Pound

The pound may have recovered from its post-Brexit lows, but it’s set to face another round of Brexit heat, analysts said.

In the wake of the U.K.’s late June vote to exit the European Union (EU), the pound tumbled to as low as $1.1450 in an October flash crash.

But the currency recovered from those 30-year lows in the wake of Donald Trump’s surprise U.S. election win, reaching levels above $1.27 in early December. That was up from levels under $1.24 before the election results, potentially on expectations that the president-elect could pursue a “fast-track” trade deal with the U.K.

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
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 Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. 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.