The Pound is falling for the third consecutive day, after more Brexit related tension in parliament and still no clarity being cast over what will be the outcome of the process. The negative effect of Brexit uncertainty on Sterling was compounded after a declaration by one the Bank of England’s leading policy makers, Michael Saunders. Even if a no-deal Brexit is avoided, the BoE may still be looking at cutting rates. This came as a shock – Saunders is known as a hawk, but his stance here was very dovish, resulting in 0.4% immediate losses for Sterling against the US Dollar.
Photo by Andrea Sebastiani.
It appears there is more downside risk ahead for the Pound, which will be driven by Brexit uncertainty, but also by a more dovish stance from the central bank.
