Sterling volatility continues over no deal Brexit fears

Will Britain actually extricate itself from the EU

Will Britain actually extricate itself from the EU

Sterling and United Kingdom government bonds will fall further in the run-up to Brexit, even after the pound slumped this week to its lowest in nearly a year, prominent Brexit-supporting British hedge fund manager Crispin Odey said on Thursday. The UK government has so far made little progress in agreeing on a post-Brexit trading deal with the EU. "The direction of travel is toward 0.90 and we've penciled in a 0.91-0.92 high over the coming months to reflect peak no-deal Brexit uncertainty".

The news of no-deal Brexit weighs on Sterling sending it to the lowest level since August 31 a year ago and coupled with earlier comments of the outgoing Monetary Policy Committee (MPC) member Ian McCafferty who added to the no-deal Brexit fear in public debate together with dovish monetary policy outlook.

Investors are focusing on a critical meeting in October between Prime Minister Theresa May and European Union leaders to try to thrash out the terms of Britain's withdrawal.

"A lot of companies can't wait for the negotiations outcome in October, so of course are trying to hedge against a drop in the pound", said Christophe Barraud, an economist at Market Securities brokerage in Paris.

The Indian Rupee has seen something of a bullish recovery rally in recent weeks as investors have bought the currency back from its cheapest levels.

As trade tensions have subsided, risky emerging market currencies like the Indian Rupee (INR) became more appealing.

The Pound Euro (GBP/EUR) exchange rate remains close to its worst levels in a year, reflecting the fact that a no-deal Brexit is seemingly a distinct possibility.

While the Indian Rupee's strength has been limited by stronger oil prices, it has still been able to climb against a weak Pound.

Looking ahead, the United Kingdom will publish its latest GDP figures on Friday, which may offer some much needed relief to the pound USA dollar exchange rate.

Brexit concerns continue to weigh on the Pound as traders await negotiations between the United Kingdom and the European Union to begin again in the coming weeks. Q2 GDP growth projections and business investment projections will be published too. Our outlook on the British pound remains bearish.

Unless trade jitters worsen again though or there are optimistic Brexit developments, the Pound to Indian Rupee (GBP/INR) exchange rate is forecast to remain in a weakened state.

Recommended News

  • Greek teenager Tsitsipas upsets Djokovic to reach Rogers Cup quarter-finals

    Greek teenager Tsitsipas upsets Djokovic to reach Rogers Cup quarter-finals

    Djokovic was chasing his fifth Rogers Cup title but was beaten in three sets by Tsitsipas, who turns 20 this weekend. The world No. 27 is on quite the roll coming in from Washington where he made his fourth career ATP semifinals.
    News Corp upbeat on digital assets growth

    News Corp upbeat on digital assets growth

    For the Australian businesses, News Corp reported revenues lifted 1% for the full year in the news and information segment. Bloomberg LP, the parent of Bloomberg News, competes with News Corp.in providing financial news and services.
    Messi succeeds Iniesta, named new FC Barcelona captain

    Messi succeeds Iniesta, named new FC Barcelona captain

    Following the departures of Iniesta and Mascherano, this left two vacant spots from the available four. In fact, the new captains correspond with the places for the longest serving players.
  • Nasa spacecraft heads to sun for closest look yet

    Nasa spacecraft heads to sun for closest look yet

    The launch was originally set for Saturday morning, but was scrubbed at the last minute due to technical glitches. The probe is created to plunge into the Sun's atmosphere, known as the corona, during a seven-year mission.
    NASA postpones launch of first solar probe until Sunday

    NASA postpones launch of first solar probe until Sunday

    It will make its very closest approach in 2025, when it will get within 3.8 million miles of the sun's surface. Many were skeptical and told him to read up on it first "so you don't make these killer mistakes", he recalls.
    Airline Worker Steals Aircraft, Crashes Near Seattle

    Airline Worker Steals Aircraft, Crashes Near Seattle

    The stolen plane was a twin-engine turboprop Q400 belonging to Horizon Air, its parent company Alaska Airlines said on Twitter . John Waldron was walking along a trail near the bay when he noticed the two military jets following a plane doing aerobatics.
  • Trump Calls Omarosa a ‘Lowlife’ in Response to Book Claims

    Trump Calls Omarosa a ‘Lowlife’ in Response to Book Claims

    It's sad that a disgruntled former White House employee is trying to profit off these false attacks'. A previous Inquisitr article also notes that Omarosa has claimed that Donald Trump eats paper.
    Arsenal Vs Manchester City: 3 Key Battles To Watch Out For

    Arsenal Vs Manchester City: 3 Key Battles To Watch Out For

    He said: "We can do our job, yes, but maybe Liverpool , Arsenal, Tottenham and Chelsea can do their job better and win". Pep Guardiola's team are fancied once more, and who'd put it past them to be lifting the title again in May.

    Trump Calls Omarosa A 'Lowlife' Ahead Of Her Book Release

    She admits that she may never be able to get those tapes, but said three unnamed sources described their shocking contents to her. Ms Manigault Newman was a contestant on The Apprentice and later served as a senior adviser to the president.
  • Trump condemns racism on Charlottesville anniversary

    Trump condemns racism on Charlottesville anniversary

    Her parents, Susan Bro and Mark Heyer, challenged the mourners to learn from their daughter's love for others and outspokenness. The security measures alarmed activists but reassured others who said they have painful memories of last year's chaos.
    Jorginho scores penalty as Chelsea win and Crystal Palace spoil Fulham's return

    Jorginho scores penalty as Chelsea win and Crystal Palace spoil Fulham's return

    Like Wolves, Fulham earned rave reviews for their summer business, outspending United and City, in signing 12 new players. In 23 of the last 25 Serie A [seasons], the 91 points we had past year would have been enough to win it.
    Trump calls for peace on Charlottesville anniversary as residents on edge

    Trump calls for peace on Charlottesville anniversary as residents on edge

    Participants plan to march from Washington's Foggy Bottom neighborhood to Lafayette Park, across the street from the White House . On Sunday, thousands of counter-protesters are slated to attend multiple rallies against white supremacy in Washington , DC.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.