Pound Extends Decline Versus Dollar After Worst Drop Since 2010
Lmfx, Posted on February 24, 2016
The U.K. currency’s slide on Monday took it to the lowest level in almost seven years after London Mayor Boris Johnson, one of the nation’s most popular politicians, said he’ll campaign for Britain to leave the European Union in a June referendum.
Sterling’s 1.8 percent plunge was its biggest since May 6, 2010, when the currency was also hit by political turmoil, on that occasion resulting from an inconclusive general election.
The pound “has underperformed ahead of U.K. political events in the past,” Commonwealth Bank of Australia strategists, including Peter Dragicevich, wrote in a note. “The upcoming referendum will be no different.”
With traders having pushed back bets on the timing of a Bank of England interest-rate increase, the prospect of Britain leaving the world’s largest single market had been causing further concern, helping push down the pound against all of its Group-of-10 peers this year.
BOE Governor Mark Carney is due to testify to lawmakers about the outlook for the U.K. economy and monetary policy on Tuesday.
The pound slid 0.3 percent to $1.4108 as of 8:08 a.m. London time. The currency fell to $1.4058 on Monday, the lowest since March 2009.
United States F D I into India has jumped 500% in the last two years
When Indias commerce minister Nirmala Sitharaman meets US commerce secretary Penny Pritzker in New Delhi on Tuesday (Aug. 30), the duo will have plenty to cheer about.
Quartz, Posted on August 30, 2016
Banks are preparing for an economic nuclear winter
According to CNBC:
The first half of 2016 has been a roller-coaster for financial markets. A combination of uncertainties surrounding the U.K.s vote to leave the European Union and...
CNBC, Posted on August 29, 2016