GBP/USD has tumbled below 1.20 as traders flock to the dollar. Yohay Elam, an analyst at FXStreet, explains three reasons for the cable’s slide.
Key quotes
“Everything is on a fire sale. The dollar is the world’s reserve currency and that is where investors flock to.”
“The UK government’s late move to discourage mass gathering is being punished by investors.”
“For the UK, it is only the beginning of the end, with estimates of major disruptions running from three months to a full year – after the transition period from Brexit ends. The high level of uncertainty is also weighing.”
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