The Great Britain pound weakened against its major rivals during the past trading week as fears of the Brexit reemerged. The weakness spilled over to the euro, which would also suffer in case the United Kingdom exits the European Union.
The week before, polls were showing that votes in favor staying in the EU were prevailing. Yet this week, it looked like that those who prefer to leave had upper hand. The sterling is likely to continue experience high volatility until the referendum on June 23.
Among other news, the Reserve Bank of New Zealand kept interest rates unchanged during its meeting this week, and this made the New Zealand dollar the strongest currency on the Forex market during the week.
Talking about central banks’ policy meetings, there will be plenty of them during the coming week. The Bank of England, the Bank of Japan, the Swiss National Bank, and most importantly the Federal Reserve will make decision regarding monetary policy.
GBP/USD fell 1.8% from 1.4463 to 1.4259 over the week. EUR/GBP went up from the open of 0.7845 to settle at 0.7891, bouncing from the weekly low of 0.7752. GBP/JPY went down from 154.12 to 152.23 following the rally to 157.92.
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