The pound has updated the lows from October 2016

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The pound this week managed to update the lows from October 2016 in tandem with the U.S. dollar, and it is likely that this is not the limit of the fall of the British currency. New “bottom” of the pair pound/dollar is fixed at 1,1958, the minimum fall three years earlier — 1,1948, that is, a little bit more and the pound will collapse to the lows from which escape will be difficult.
In the GBP/RUB, which trades on the Moscow stock exchange, is also being reduced, but it is not so pronounced. Per pound give 80,86 RUB at the August high of 82 RUB the Medium, the instrument is trading in a downward channel, but below 78 RUB. the pound have not yet seen.
Why “English” has become so vulnerable? All in Brexit and the position of the new British Prime Minister Boris Johnson for this reason. Johnson reminds every day that the UK leaving the EU on 31 October with a deal or without it. Thus, the question remains open with the Irish border, for example, and a mass of financial documents.
The country is not yet ready for Brexit formally and from the point of view of legislation, the government suspended until mid-October, the members of Parliament is falling apart because many disagree with the aggressive position of Johnson. It is here concluded the main risks to the pound, and that is what scares investors.
It seems that the main stress of “British” still ahead, the fall of the GBP will be in the middle of autumn, and will be deeper than is observed today. This means that to buy the pound it’s still early – there may be levels and more interesting.
Anna Bodrova,
Senior analyst,
“Information-analytical center “Alpari”