GBP/USD on Course For Worst Month Since October

The pound headed for its biggest monthly decline versus the dollar since October as Brexit talks between the U.K. and the European Union, alongside an underwhelming economic outlook, kept the currency pressured.Sterling was on track for its fourth consecutive month of losses versus the euro. Comments from Bank of England policy maker Michael Saunders, that a modest interest-rate increase was warranted, did little to support the British currency, which weakened against 13 of its 16 major peers Thursday.Political uncertainty in the U.K. also limited gains in sterling with U.K. Prime Minister Theresa May’s future coming under increased scrutiny after the Conservative Party’s poor performance in the June snap elections. While May said she will still run for re-election, in an interview to ITV in Kyoto, Japan, her own lawmakers doubted her prospects.

Source: Brexit-Hit Pound Set for Worst Month Versus Dollar Since October – Bloomberg

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.