GBP Lower in Volatile Trading After Brexit Trigger

Sterling slipped against the dollar after a choppy day of trading on Wednesday, receiving no clear direction from Britain’s formal triggering of its exit from the European Union.

Prime Minister Theresa May began Britain’s divorce procedure from the EU earlier in the day, declaring there was no turning back and ushering in a tortuous process that will test the bloc’s cohesion and pitch her country into the unknown.

The pound had touched an eight-day low of $1.2377 in Asian trading, before bouncing back to trade as high as $1.2478 after the confirmation that the EU’s Article 50 – which kickstarts two years of negotiations between Britain and the bloc – had been triggered.

By 1550 GMT, though, sterling had slipped back to $1.2403, leaving it down a third of a percent on the day and in the middle of the $1.20-$1.28 range it has broadly traded in over the past six months.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza