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Fresh lows for the pound today

• Posted by Shyam Gokani in Uncategorised
• October 11, 2016
• No Comments

Sterling fell back below $1.23 on Tuesday, trading down 0.6 percent on day as it continued to suffer from concerns about the economic fallout of Britain’s planned exit from the European Union.

Trade-weighted sterling hit a nearly-eight-year low of 74.0 at the Bank of England’s first morning print of the index, which measures the pound’s broader strength.

It was also half a percent weaker at 1.1048 euro per pound.

Some traders cited a Financial Times report that Russian bank VTB may move its European hub to Frankfurt, Paris or Vienna as having added to worries of financial sector cutbacks in London due to Brexit.

There is nothing to go on the data front today, but concerns surrounding our ever increasing current account deficit have reignited discussion around the widespread impact such a hole can create.

Liquidity is also a cause for concern as present, highlighted by gaps in price action.