Economic news

Pound dips as investors consider Brexit scenarios

On Wednesday the British pound fell underneath $1.24 to an over two-year bottom as markets kept on estimating the possibility of Britain smashing out of the EU without a progress course of action set up.

poundPhoto: Flickr

With financial figures demonstrating the UK economy attempting to add traction, loading more weight on the BoE to ease monetary policy, traders took to the pound derivatives and futures markets to bet on more tightening. 

On Wednesday, the pound shrank for the third day in a row versus the greenback to $1.2391, its minimum since April 2017 and looking forward to its greatest month to month drop since June 2018. 

Sterling has dropped 1 percent versus the euro so far current month while versus the dollar it has lost around 2.3 percent. 

The probability of a "no-deal" Brexit made traders dashing to prepare for larger sterling fluctuations, with three and half year implicit volatility patterns bouncing recently while investors increase short futures positions in the sterling.

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