38384
Sterling Dragged Down by “Brexit” Worries
World Economy

Sterling Dragged Down by “Brexit” Worries

Sterling retreated further from a one-month high against the dollar on Tuesday, after a new poll suggested slightly more Britons want to leave the European Union than stay, fuelling fresh uncertainty about a possible “Brexit”.
The pound had rallied from a seven-year low of $1.38 struck in late February to a one-month high of $1.44 on Friday as some of the concerns about Britain leaving the European Union receded, Reuters reported.
But traders said the new poll published in the Daily Telegraph on Tuesday pushed the pound lower. The ORB opinion poll showed support for the European Union stood at 49%, two percentage points ahead of the campaign for staying in the EU.
Sterling was down 0.8% at $1.42, losing ground for the second straight day. The euro was up 0.6% at 78.10 pence.
“The new poll has led to some selling in the pound,” said a spot trader. “Given the recent rise, we could see investors going back to building short positions against sterling.”
Investors worry that Brexit could drag down growth, push back UK rate hike expectations and also threaten the huge foreign investment flows Britain needs to balance its current account deficit, one of the biggest in the developed world at about 4% of output.
Most traders said sterling will struggle before the vote on June 23, particularly if labor data on Wednesday adds to signs that uncertainty over the referendum is worsening a slowdown in UK growth.
There is also the British budget this week. British Finance Minister George Osborne said he would announce deeper cuts to public spending this week in order to protect his plan to eliminate the budget deficit from a weakening of the economy.

 

Short URL : http://goo.gl/3D5uiL
  1. http://goo.gl/J1yDWl
  • http://goo.gl/iatfQ8
  • http://goo.gl/XxHQS1
  • http://goo.gl/UUmwxy
  • http://goo.gl/iDE7cI

You can also read ...

China Warned of Ballooning SOEs
Former chief of the World Bank Robert Zoellick cautioned China...
Business confidence fell to its lowest level since August 2013 and around 7% of companies expected a contraction.
According to data from the International Monetary Fund in...
Shrinking unemployment in the US, Japan and the eurozone finally forces companies  to lift wages to retain and attract staff.
Workers in the world's richest countries are getting their...
New Zealand Q2 GDP Growth Picking Up
New Zealand’s economic growth is expected to have accelerated...
Saudi Sovereign Fund Secures $11 Billion Loan
Saudi Arabia's sovereign wealth fund said Monday it had...
Lira Eases Against Dollar
Turkey’s lira weakened against the dollar on Monday as...
By 2025 more than half of all current workplace tasks  will be performed by machines.
Robots will handle 52% of current work tasks by 2025, almost...
Myanmar Businesses Want Lower Taxes
Myanmar businesses are urging the government to lower the...

Trending

Googleplus