The currency fell again yesterday and is now below $1.21.
Editor’s Remarks: The pound has had a difficult year as the worst performing currency of 2016 after the Leave vote won, then as a reaction to the Bank of England’s stimulus package and now after Theresa May’s speech last week indicated a Hard Brexit might be coming. Britain is now expected to leave Europe’s single market, but hope exports will drive the economy. Of note is that the FTSE 100 has done very well in rising to its highest recorded level seen due to the pound’s performance. This should not continue as the effects of Brexit should surely override the benefits of a weak pound and foreign investor’s finding British stocks cheap. What could potentially put the nail in the coffin is the expected Fed rate hike in December.
What to watch: GBP/USD, EUR/GBP, Fed Rate Decision, US Elections, FTSE 100