Yesterdays leaked Government document surrounding Brexit suggested that in every scenario the UK will be in a worse off position. In the document released on website Buzzfeed, it suggested the UK growth could be as much as 8% worse off depending on what is agreed with our European counterparts.
This release has firmly halted sterling in its tracks and once again the elusive 1.15 seems to be a hurdle too far for the pound to consistently surpass. This is now the 6th occasion in the last 6 months the pound has reached 1.15 and once again a quick sharp correction has been seen.
Other significant moves have been seen against other majors such as the US dollar. At its peak last week GBP/USD traded at 1.4325 and this morning, albeit very briefly, it fell below 1.40, a fall of 2.3% in just over three trading days. Again highlighting how volatile this current market is.
For anyone looking at EUR or USD positions, particularly those buying euros and dollars, don’t be too disheartened. In the last three months we have seen GBP/EUR as low as 1.07 and GBP/USD in min January sat at 1.3450 (we are now at 1.4070). We are still someway above the lows but it shows me how vulnerable sterling is, particularity where Brexit is involved.
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