Pound Bruised But Not Broken (Again)

Fawad Razaqzada

The pound has fallen sharply over the past couple of days. It has been among (if not) the worst performer in G10 currencies. As well as uncertainty over how and when the Brexit process will start, the pound has been undermined by weakness in UK data as industrial production in October suffered its worst month since 2012. The currency’s latest drop is not exactly gigantic, but it does represent a sizeable retracement against the recent gains made amid hopes of a ‘soft’ Brexit. I do however think the worst of the selling is over as the Bank of England is no longer looking to cut interest rates again. But it nevertheless remains vulnerable to sharp falls here and there. However against weaker currencies like the Japanese yen, it may be able to stage a comeback soon.

Source: forex.com