A big loser Monday was the pound, which fell 1 percent to $1.6131.
Earlier this year, the pound fell to a near 24-year low of just above $1.35 amid mounting worries about the state of the British economy and the level of government borrowing. It slowly recouped some of the losses since March as the appetite for risk improved, most notably in the stock markets. With concerns about the growth outlook, the early-year concerns may be re-emerging.
"Anecdotal evidence suggests some sterling selling by central banks has already taken place, but the biggest sterling threat comes from private investors turning their backs on Britain due to declining investment opportunities and the rising default risk," said Hans Redeker, global head of FX strategy at BNP Paribas.
Lovely, just lovely.
It's all gone tits up (again).
ReplyDeleteThere's so much said by so many people. A man I know in the money game told me it was going to really grip at the end of the calendar year and that the worst point of the fall out would be next April.
ReplyDeleteSo far, I've seen nothing to seriously contradict that conclusion.