Editorial TeamThe British sterling has come under selling pressure amid rising fears over the strength of the British economy as Great Britain could possible go ahead with a no-deal Brexit plan.
The pound lost more than half a cent to fall as low as $1.24 against the dollar this week and is continuing to slide on the foreign exchanges ever since Theresa May triggered the Conservative leadership race.
The British pound is currently 5% down against the US dollar and according to frontrunner Boris Johnson, Britain could leave the EU without a deal at the end of October.
Economic specialists warn of a potential technical recession before Brexit and different firms have stopped placing great orders after rushing to stockpile in the beginning of the year.
Senior market analyst, Fiona Cincotta from financial trading firm City Index recently said:
Recession concerns coupled with fears over Brexit are proving too much for pound traders to swallow. And who could blame them? The negative news keeps stacking up.
A portfolio manager at BlackRock Investment firm, Rupert Harrison said that:
Currency Investors don’t fully recognise the risks of an extreme Brexit outcome.
Market analysts like Han Tan at the financial trading firm FXTM warns that a no-deal Brexit would probably tip the economy into recession and could damage the sterling.
While a significant measure of Brexit risks have already been priced, the pound may still have more of its downside exposed, should the prospect of a no-deal Brexit ramp up meaningfully over the coming months.
