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GBP: It’s Not Only About Brexit Uncertainty; A Sell On

The British pound has been surrendering to the might of the US dollar, and also suffering the woes of Brexit.  There are further reasons to sell sterling.

Here is their view, courtesy of eFXnews:

The GBP has been under pressure of late, partly on the back of the UK’s unelected upper house voting by majority in  favour of an amendment that protects the right of EU nationals to remain in the UK after leaving the European Union. The amended bill will be debated on March 13/15, what would still leave enough time in order to trigger Article 50 ahead of the self-imposed 31st March deadline.

We stay of the view that the GBP should be sold on rallies. This is not only due to Brexit related uncertainty which is likely to rise even further as soon as the exit process begins but also as the BoE is nowhere close to consider a less dovish policy stance.

It must be noted that inflation expectations as measured by 5Y breakeven rates have been consistently falling of late, irrespective of the capped currency.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.