The prolonged fall of the British pound: a record since March 2017

analytics5d3f8b6e7b842.jpg

According to analysts, the British currency has tested lows of the last two years. Its rate against the US dollar has significantly declined since March 2017. The beginning of the new week was marked by selling the pound, which started earlier.

News from the UK became the catalyst for the course of the currency's fall. Recall that the new government stands for Brexit without an agreement. A country's withdrawal from the EU without a deal can bring many surprises, primarily for the British currency. Prime Minister Boris Johnson stressed that he would not resume negotiations regarding Brexit with the leadership of the euro bloc until the other side changes its position regarding the border with Ireland. He warned about the readiness to leave the EU without a deal. At the same time, Dominic Raab, Minister of Foreign Affairs of the United Kingdom, notes that the British government is not against the agreement, but this does not suit the EU. As a result, the UK was faced with the need to go on the path of a "hard" Brexit, stress analysts.

In the course of the confrontation between the UK and the European Union, the pound suffered the most. It is a hostage to the current situation, analysts say. In the near future, the pressure on it will further increase. Against the background of "predatory" rhetoric of politicians, the possibility of a new deal is at zero. Analysts believe that the most likely scenario is a hard Brexit or early elections in the UK, which does not add optimism to the pound.

analytics5d3f8b8255824.png

The material has been provided by InstaForex Company - www.instaforex.com