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British pound, officially the world's weakest currency

Discussion in 'Fundamental Analysis' started by AllFXBrokers, Jul 10, 2016.

  1. AllFXBrokers

    AllFXBrokers Member Trader

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    The surprise Brexit referendum results sent the British pound weaker. Just two weeks after the UK voted to part ways with the EU, the pound sterling has set quite a few records, most notably, the Great British pound becoming the weakest currency in the world. After initially falling to Brexit lows of 1.322 and posted a recovery which did not convince everyone, the sterling resumed its declines last week breaking below the Brexit lows.

    It was the Bank of England Governor's comments on Tuesday, 5th July which saw the renewed selling pressure emerge sending the GBP to new historic lows. The Bank of England released the financial stability report and also lowered the cyclical capital buffer requirements to zero. Mark Carney also said that he wasn't too worried about the declines in the sterling and said that currency's devaluation was probably required to help the UK adjust to a post Brexit world. GBPUSD closed the week at 1.2938, a level that was last seen in 1984/1985 during the height of the ERM crisis.

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