Home / forex / forex Pound falls after the election turmoil in Britain and stability in the rest of the currencies

forex Pound falls after the election turmoil in Britain and stability in the rest of the currencies

“In the near term the increased political uncertainty and the risk of more disorderly Brexit negotiations should enforce pound weakness.”

Reactions in other major currencies such as the dollar, euro and yen were limited.
For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets(Additional reporting by Shinichi Saoshiro in TOKYO; Editing by Andrew Heavens)
The dollar index against a basket of major currencies was up half a percent at 97.392.
Sterling fell 2 percent to $1.2698 after sliding as much as 2.5 percent to $1.2636 in early European trade, its weakest level since April 18.

according to

FOREX-UK election upset pummels pound, other currencies stay calm

FOREX-UK
FOREX-UK election upset pummels pound, other currencies stay calm

The index had retreated to a seven-month trough of 96.511 midweek when caution ahead of Comey’s testimony and the British election drove U.S. yields to lowest levels since November.
“The focus for the broader currency market will now shift towards the Federal Reserve’s policy meeting next week.”
“The swings in the pound have not spilled over into other currencies as the market was well hedged and prepared for a variety of election scenarios.”
“Britain’s exit from the European Union will continue regardless of the political turmoil likely to be created by the election results.
The dollar index against a basket of major currencies was up 0.3 percent at 97.221.

according to

“(The election result) is more of a UK-specific negative development than a broader, global, macro one,” said MUFG currency strategist Lee Hardman in London.
Reactions in other major currencies such as the dollar, euro and yen were limited.
The dollar was up 0.4 percent at 110.385 yen and against a basket of major currencies was up half a percent at 97.392.
For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets(Additional reporting by Shinichi Saoshiro in TOKYO; Editing by Andrew Heavens and Toby Davis)
The result – flagged by some analysts as the worst possible election outcome due to uncertainty – saw the pound fall as much as 2.5 percent to $1.2636 in early European trade.

collected by :kiven Dixter

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