Dubai: Traders in the best performing pound may face a reality check after the weekend happenings in the United Kingdom.
The uncertainty over the UK crashing out is higher than ever. About 1 million people participated in protests to call for a second Brexit referendum, along with 4.2 million people signing for a online petition to revoke Brexit. A newspaper report also suggested that UK prime minister Theresa May is facing a revolt from members of her own government to step down, increasing the uncertainty for traders.
“The pound will most likely find itself exposed to significant downside risks. With the prolonged moving nature and fluidity of the Brexit situation weighing heavily on sentiment, Sterling remains at risk of unwinding its year-to-date gains,” Lukman Otunuga, Research Analyst at FXTM said.
On Friday, the pound closed 0.78 per cent higher at 1.3209 against the dollar. The pound had shed more than 1.5 per cent on Thursday. The pound has been one of the best-performing currencies in the world, and has gained 3.57 per cent against the dollar since the year so far.
Traders in the United States would eye the Meuller’s report on the possible collusion between US president Donald Trump and Russia in 2016 elections.
The Dow Jones Industrial Average closed 1.77 per cent lower at 25,502.32, The S&P 500 index closed 1.90 per cent lower at 2,800.71. Treasury 10-year note yields sank below three-month Treasury bill yields for the first time since 2007.