GBP Weakens Again on GDP and Brexit Uncertainties

[[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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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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