The pound fell by as much as 1.6% this morning, breaching the 1.20 to the dollar level for the first time since last October’s flash crash.
To be sure, some of it is due to a lack of liquidity as the U.S. celebrates Martin Luther King Day on Monday. Nonetheless, taking profit from buying on dip may be limited because “we should expect GBP pull back capped until further clarity emerges”, said Stephen Innes, senior trader at OANDA.
In Asia, the Japanese yen gained 0.16% as investors sought its safe haven. Commodity and emerging markets currencies declined. The Australian dollar fell 0.3%, and the Singapore dollar dropped 0.3%.
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