The small steps made by the pound towards recovery after Monday’s low were put to a halt following dovish remarks from the Bank of England whose governor, Mark Carney, claims that more stimulus will likely be needed over the coming months.
The sterling dropped to $1.3200, bringing it unnervingly close to its 31-year low of $1.3122, encountered at the beginning of the week, then balancing out at a much more comfortable $1.3300. Against the yen, it is also holding up, currently having decreased to 136.20, but remaining above it’s low of last Friday.
The euro, meanwhile, finds itself at 83.30 pence, in comparison to its recent 83.83 pence high. It dropped significantly against the dollar overnight, to $1.1023, but found its footing again, standing at $1.1105 at present.
Predictions for the sterling show continued expectations of volatility and uncertainty, reflecting the as of yet unknown terms of the UK’s exit from the EU.
Elsewhere, China is set to change the scene from this week’s barrage of Brexit news, as a series of surveys related to its manufacturing sector are being released. Commodity currencies like the Australian dollar are especially wary of the impact that poor survey outcomes will have.
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