- Analytics
- News and Tools
- Market News
- Pound сould find a floor at $1.17 in overwhelmingly short market
Pound сould find a floor at $1.17 in overwhelmingly short market
The pound’s sudden surge Thursday made one thing clear: after an almost 9% tumble from the year’s highs, it may now be close to a floor where value hunters are waiting.
In a market that’s overwhelmingly short the currency, a further decline of about 4% may tempt buyers back in, according to some strategists. Such a drop would take it to levels unseen since 1985.
For State Street Bank and Union Bancaire Privee, it’s not yet time to make a bet on a pound recovery but further declines into the Oct. 31 Brexit deadline could add to its appeal. Strategists at both institutions point to $1.17 as a level that looks attractive to enter long positions, although that would depend on their verdict on the extent of the bad news behind the drop..
“It’s been an incredibly popular trade to sell sterling -- at a certain point, if everybody sold sterling, who else is there left to sell?” Monique Wong, a senior portfolio manager at Coutts & Co., said.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
