Pound Slumps to New Two-Year as No-Deal Brexit Fears Intensify

Concerns over the United Kingdom crashing out of the European Union with no Brexit deal in place is clearly haunting investor attraction towards Sterling which has weakened against every single G10 currency today. Michael Gove’s comments over the weekend on how the government is “operating on the assumption” of the UK leaving the EU has rubbed salt on an open wound for the British Pound.

With uncertainty over Brexit, the new conviction ahead of the October 31 deadline is that the path ahead for Sterling will be filled with many obstacles and more pain. If the GBPUSD can clear 1.2200, bears may be instilled with enough inspiration to test 1.2000.

GBPJPY tumbles to 2-year low

Fears of a no-deal Brexit have sent the GBPJPY tumbling to a two year below 133.00.

This currency pair is firmly bearish on the daily charts and is likely to sink lower once a daily close under 133.00 is secured. With attraction towards Sterling deteriorating by the day, the GBPJPY is set to test 132.00 in the short to medium term.

EURGBP blasts above 0.9050

A weaker Poundhas sent the EURGBP shooting back past 0.9050 today. A daily close above this point should open the doors towards 0.9170 this week.

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Lukman Otunuga

Lukman Otunuga is a research analyst at FXTM. A keen follower of macroeconomic events, with a strong professional and academic background in finance, Lukman is well versed in the various factors affecting the currency and commodity markets. Lukman provides in-depth analysis on the global currency and commodity markets and is often quoted by leading international media outlets such as: MarketWatch, CNBC, NASDAQ, Reuters, AFP, The Guardian and Yahoo. Prior to joining FXTM, Lukman spent two years as a research analyst with international currency broker FXCM, where he focused on a technical and fundamental analysis of the global currency, commodity, and stock markets. Lukman was also responsible for leading educational seminars for international and local high net worth individuals, and has published a series of educational articles on forex trading with City A.M. Lukman holds a BSc (hons) degree in Economics from the University of Essex, UK and an MSc in Finance from London School of Business and Finance, where he studied corporate finance, mergers & acquisitions and the role of international financial institutions