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.


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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam