The Financial Post reports in its Thursday edition that Britain's economic gloom and a fast-approaching Brexit deadline kept sterling near two-year lows on Wednesday, while diplomatic spats with the United States and China highlighted the country's troubled ties with other trade and political partners. A Reuters dispatch to the Post says that the past two weeks or so have seen a sharply deteriorating outlook for the British currency, which is set for a record 10-week losing streak versus the euro. Against the dollar, it is at its weakest since April, 2017. "It looks like sterling is managing to find bad news everywhere," said Adam Cole, chief currency strategist at RBC Capital Markets. "Sterling is characterized by fat-tail risks in both directions, but at the moment downside risks dominate." A raft of dismal data and the risk of crashing out of the European Union without agreeing to transitional trade arrangements has forced the Bank of England to change its upbeat assessment of the economy. Its hitherto hawkish stance, at odds with other central banks in the developed world, had been a key source of support for sterling this year. Last week, however, Governor Mark Carney suggested the bank might cut interest rates.
© 2019 Canjex Publishing Ltd. All rights reserved.