The Pound Sterling skidded against the US Dollar with the greenback recouping some of the losses it sustained on Friday in the wake of a disappointing labor report. Sterling’s trade-weighted index struck its lowest level in 7 years on growing concerns over the impending Brexit from the E.U. One currency strategist in London believes that market players will have to ready themselves for additional weakness and a price lower than the $1.20 level should be considered.
As reported at 10:54 am (BST) in London, the GBP/USD was trading at $1.2416, down 0.18%; the pair earlier hit a session trough of $1.2363 while the daily peak was at $1.2448. The EUR/GBP was lower at 0.8998 Pence, down 0.12%, not far from the day’s low of 0.8995 Pence.
Dollar Upbeat Despite Poor NFP
Despite Friday’s unexpectedly poor labor report from the US, the Dollar is gaining strength on expectations that the Fed is likely to raise rates in December and could push through two more rate hikes in 2017. The US Dollar Index is currently higher at 96.690 .DXY, up 0.06%. The EUR/USD, among the most traded of all currency pairs, is currently at $1.1169, down 0.28% for the Euro; the pair has ranged from a trough of $1.1166 to $1.1201 in today’s trade.