The British Pound currency rate is the globe’s worst-performing major currency against the USD exchange rate this month, as GPB to US dollar conversion rate sunk above 5%.
Fears of a ‘hard-Brexit’ strongly weighed on the British Pound converter rate, as European Union (EU) officials advocate a strict stance in the U.K.’s departure, and intensifying doubts surrounding the U.K. economic condition may put more pressure on its Monetary Policy.
The massive decline in Sterling to USD exchange on Tuesday saw GBP/USD exchange rate declined to 1.2090, just 200 pips high from the Friday’s flash crash.
Following a historical plunge in GBP to USD currency converter rate last week, GBP/USD rate is now gaining some momentum following an unexpected announcement from Theresa May that she is now going to allow Parliament to poll on her monetary plan.
At the end of latest trading session, the Pound exchange rate remains the top performer in the G10, surging above 1.3% against the Euro conversion rate and grew 1% against the US dollar currency rate.
Theresa May decision to allow Parliament to poll on her monetary plan will permit the UK’s elected representatives to examine monetary plans for Brexit. This decision has provided a support to the sterling’s exchange rate, as it could possibly bound the viewpoint of a “hard Brexit” taking the British economy out of the single market, which was key concern for traders over the last few weeks.
On the other hand, USD currency conversion rate remains week following the weaker-than-expected Non-Farm Payrolls (NFP) report. However, lower than expected NFP may have a little impact on fed’s decision to increase their interest rate by the end of this year.