GBPUSD hits lowest level since 2010 – Investec

FXStreet (Delhi) – Research Team at Investec, suggests that the Pound has been trending lower against the US Dollar since the middle of last year, fuelled by the Fed's move to raise interest rates and the BoE's reluctance to follow.

Key Quotes

“The move gained momentum in November as the UK Quarterly inflation report was much more dovish than anticipated, while the Fed finally hiked rates in December for the first time in 9 years. UK PM Cameron's recent talk in parliament laying out his EU referendum intentions (leading many to believe that Brexit event risk is likely to take place this year) has left the Pound teetering over the abyss.

Yesterday the Pound traded fresh 5 year lows under 1.4565 against the greenback, reportedly triggered by a new opinion poll showing a growing desire among Britons to leave the EU. This also saw the Pound drop under 1.3500 against the Euro. In both cases, very few levels remain before larger downside risks open up.”