GBP/USD to extend its decline toward the 1.20 mark – ING
|GBP/USD is trading at its lowest level in two years below 1.22. Economists at ING expect cable to extend its losses to tward the 1.20 level.
Politics hit the pound
“Reports suggest that the UK government is giving the EU until early next week to soften Northern Ireland's trading arrangements, otherwise the UK will introduce legislation to do so. A UK-EU trade war will be the headline and will not be welcome for the growth-sensitive sterling.”
“Cable remains very heavy and can continue edging towards 1.20.”
“EUR/GBP could edge higher to 0.8650, but as we have seen with EUR/GBP over the last two years, chasing short-term moves remains dangerous and it could easily reverse.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.