Sterling Tumbles

The pound fell by as much as 1.6% this morning, breaching the 1.20 to the dollar level for the first time since last October’s flash crash.

To be sure, some of it is due to a lack of liquidity as the U.S. celebrates Martin Luther King Day on Monday. Nonetheless, taking profit from buying on dip may be limited because “we should expect GBP pull back capped until further clarity emerges”, said Stephen Innes, senior trader at OANDA.

In Asia, the Japanese yen gained 0.16% as investors sought its safe haven. Commodity and emerging markets currencies declined. The Australian dollar fell 0.3%, and the Singapore dollar dropped 0.3%.



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.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes