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Where Will GBP Head After Article 50 is Triggered?

Sterling is likely to drop around 5 percent against the dollar soon after Britain starts its formal divorce proceedings from the European Union next year, but it is not expected to weaken to parity with the euro, a Reuters poll found.

Since Britons voted on June 23 to leave the EU, the pound GBP= has dropped almost 20 percent against the dollar, a decline that is not yet over, according to the poll of over 60 foreign exchange strategists taken in the past few days.

Prime Minister Theresa May has said she intends to trigger Article 50, which starts the two-year countdown to leaving the EU, before the end of March, and the median forecast suggested after she does the pound would fall to $1.15.

Reuters [1]

Too Predictable [2]

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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 [8]

Senior Market Analyst, UK & EMEA at OANDA [9]
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
Craig Erlam

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