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Does More Pain Lie Ahead For the Pound

The pound may have recovered from its post-Brexit lows, but it’s set to face another round of Brexit heat, analysts said.

In the wake of the U.K.’s late June vote to exit the European Union (EU), the pound tumbled to as low as $1.1450 in an October flash crash.

But the currency recovered from those 30-year lows in the wake of Donald Trump’s surprise U.S. election win, reaching levels above $1.27 in early December. That was up from levels under $1.24 before the election results, potentially on expectations that the president-elect could pursue a “fast-track” trade deal with the U.K.

CNBC [1]

EUR/USD – Euro Edges Higher Ahead of US Final GDP [2]

Italian Retail Sales Spike in October [3]

MS [4]

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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