GBP/USD Set for its Biggest Monthly Drop in a Year

The Sterling looks all set for its biggest monthly drop since June 2018 over Brexit woes.


As Brexit woes continue to mount while the UK looks for a new leader to take on the PM’s role after Theresa May, the Sterling looks all set for its biggest monthly drop since June 2018. At the time of writing, GBP/USD is trading at 1.26, close to a four-month low it hit last week.

Most of the weakness was triggered over the uncertainty of May’s successor and an increasing likelihood of a no-deal Brexit. A new leader would most likely want to renegotiate for a better Brexit deal with the EU, something the European Commission has insisted that it is not interested in.

To make matters worse, most of the candidates vying to replace May are pro-Brexit and are insisting that the UK should leave the EU on October 31, with or without a deal. Meanwhile, the markets are concerned that a no-deal Brexit would have a significant impact on UK’s economy in the aftermath of such an exit.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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