Pound plunges to historic 30-year low

In past one week, in forex market there is quite turbulence as GBP has fallen at multiple decades low. Right now, exchanges between major currencies as GBP/USD is trading at 1.24658, EUR/USD at 1.11168, USD/JPY is trading at 103.848.

The pound dropped almost 10 per cent at one point to USD 1.1378 before stabilising around USD 1.2415. Sterling plunged to fresh three-decade lows yesterday against the US dollar. Pound witnessed a weekly loss of 4.2 per cent. There are various negative sentiments across globe after fallout of BREXIT. Meanwhile, weakness in Euro and Yen also created the demand for dollar globally.

There are some of the major drivers for fall out of Sterling in recent days. The traders are seeing BREXIT’s uncertainties to come out as a Pound fall. The domestic data of UK is due on Friday, therefore GBP traded lower on intraday basis.

Meanwhile, The Euro has risen further against the Pound (EUR GBP) owing to rumours that ECB to follow aggressively low interest rate policy, as low interest rates were blamed for low profitability in European banks. On the other hand, one of the major bank Deutsche Bank is witnessing the ongoing crisis, which is already a hot topic.