GBP Weakens Again on GDP and Brexit Uncertainties - Forex News by FX Leaders

GBP Weakens Again on GDP and Brexit Uncertainties

Posted Tuesday, June 11, 2019 by
Arslan Butt • 1 min read

GBP/USD had managed to cross the 1.27 level late last week over weakness in the USD, but the disappointing GDP figures released on Monday have pushed it back under this level once again. Add to that all the uncertainty about who will succeed Theresa May as the next Prime Minister, and the Pound weakens further.

While the US dollar weakened last week over increasing chances for a rate cut by the Federal Reserve, the high likelihood of a pro-Brexit, Eurosceptic candidate succeeding May as the next PM continues to exert downward pressure on the Sterling.

As of now, Boris Johnson remains the front-runner, a well known pro-Brexiteer, whose ascension could significantly increase the likelihood of a no-deal Brexit. In addition, UK’s GDP contracted 0.4% in April, and the weakness in the British economy ahead of Brexit caused the Pound to decline further.

At the time of writing, GBP/USD is trading at around 1.268.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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