38677
Pound Becoming More Volatile
World Economy

Pound Becoming More Volatile

For the pound, the past three months were the most volatile since June against the dollar -- and a gauge of future price swings suggests there’s more to come.
Sterling has declined about 3.6% this year, accelerating its drop after the referendum on Britain’s membership to the European Union was set for June 23, and prominent Conservative party politician Boris Johnson announced his support for the campaign to leave. A gauge of implied volatility in the pound-dollar exchange rate in three months’ time, based on options, was near the highest level since 2010, Bloomberg reported.
Against the euro, sterling tumbled to its weakest level since 2014 this week after a report showed a gauge of manufacturing output held near the lowest since 2013. Reports next week on the services sector as well as industrial and manufacturing production will give traders further insight into the extent to which the UK economy is faltering.
“Sterling is certainly going to be volatile,” said Thu Lan Nguyen, a currency strategist at Commerzbank AG in Frankfurt. “Sentiment towards the pound is very, very shaky, with the ‘Brexit’ vote coming closer,” she said, referring to a possible British exit from the EU. “I cannot exclude that if the data next week disappoints that we will rise even further in euro-sterling.”
The pound slumped 1.1% to $1.4199 as of 4:52 p.m. London time Friday, deepening a 2.6% decline from the first quarter. Sterling fell 1% to 80.09 pence per euro, after reaching 80.20 pence, the weakest since November 2014.
Sterling weakened at least 2.7 percent against all 16 of its major peers this year amid concern the Britain will vote to leave the world’s biggest single market.

Short URL : http://goo.gl/r1OF3z
  1. http://goo.gl/tGmvN7
  • http://goo.gl/FaV6Az
  • http://goo.gl/Bp9uqe
  • http://goo.gl/dWACdD
  • http://goo.gl/CVim07

You can also read ...

Innovation, Technology Should Boost Hong Kong Economy
Innovation and technology will become profitable in Hong Kong...
Annual expansion in the second quarter fell to 4.5%.
Malaysia cut its full-year growth forecast and reported much...
Government data shows the number of jobs created in July fell to the lowest levels in over eight years.
South Korea’s ranking officials revealed a disparity in their...
Canada Inflation Surges
Canada’s inflation rate surged to 3% in July, fueled by rising...
As technological progress makes people richer in terms of many basic goods and services, it may be inevitable  that more human activity is devoted to zero-sum competition for available income and assets.
Across the global economy, the potential for automation seems...
Trade War Won’t Dent China GDP
Analysts are trying urgently to evaluate the potential impact...
Italy to Launch New Infrastructure Plan
The government will launch a plan aimed at making Italy’s...
Amazon to Challenge TiVo With Live TV Recorder
Amazon.com Inc. is developing a new device that records live...

Trending

Googleplus