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Sterling Claws Back Some Ground After Hitting 31-Year Low

Posted by Chris Advincula on Jun 28, 2016 6:33:09 AM

(Jun 28 Reuters) Sterling clawed back some ground against the dollar and euro on Tuesday but in the context of a historic 11 percent fall after Britons voted last week to leave the EU, analysts said this was merely a pause rather than the start of any upward trend.

The pound's rise, more than 1 percent at one point, would under normal market conditions be considered a decent rebound, but the move seemed modest, given that Thursday's Brexit referendum triggered the currency's biggest fall in modern history, to a 31-year low.

Sterling fell about 7 percent on Friday alone - its biggest one-day fall in the post-1973 floating-exchange-rate era. On Tuesday, the highest it hit in morning trades was $1.3373, still almost 17 cents lower than where it was trading before the referendum results started to be announced.

Ratings agencies S&P and Fitch both downgraded Britain's sovereign credit standing on Monday, judging Brexit would hurt the economy, though that did not seem to further dent sterling.

Click on the link below to see the full story from Reuters: (by Jemima Kelly) 

Sterling claws back some ground after hitting 31-year low

GBPUSD.6.28.2016.jpg

 

 

Topics: GBPUSD, S&P, U.K. Economy, Europe, UK, Fundamentals, FITCH, BREXIT

 

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