GBP Falls After May Signs Article 50 Letter

Sterling fell in early Asian trading as investors brace for the start of the two-year negotiation for the U.K. to leave the European Union.

The pound fell as much as 0.6 percent to 1.2377 per dollar, and was the worst performer among the Group-of-10 which saw muted trading. Some funds left it late in adjusting positions and then did so in poor liquidity, said a trader who asked not be identified as he isn’t authorized to speak publicly. Britain’s ambassador is expected to hand EU President Donald Tusk a letter at around 1:30 p.m. local time in Brussels invoking Article 50 of the Lisbon Treaty.

Bloomberg

EUR/USD – Euro Dips

Pound Lower As UK and EU Divorce Begins

Screen Grab

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 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
Craig Erlam

Latest posts by Craig Erlam (see all)