GBP Tumbles as May Prepares Article 50

The pound tumbled against all of its Group-of-10 peers as London traders sold the currency after U.K. Prime Minister Theresa May was given the go-ahead to trigger Brexit.

Sterling had a delayed reaction to the news, which came out late Monday in London and gives May the chance to formally kick off negotiations with the European Union. Market participants had been reluctant to sell the currency during Tokyo trading hours as markets were quiet before the Federal Reserve meeting on Wednesday, according to Masashi Murata, a currency strategist at Brown Brothers Harriman. The selloff comes a day after Scottish First Minister Nicola Sturgeon signaled the start of a legal process for an independence

The pound has been one of major victims of the U.K.’s vote to exit the European Union, and has fallen about 19 percent versus the dollar since the June referendum. Sterling has also shown a propensity to drop after new developments in the Brexit process, even if, as is the case for Monday’s votes, they have been widely expected.

Bloomberg

EUR/USD – Euro Steady as German ZEW Economic Sentiment Improves

Sterling to Suffer with Two Divorces

MS

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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.