Japanese Yen Continues to Outperform, British Pound Remains Worst Performing Currency
The British pound remained the worst performing currency against the greenback and slipped to a fresh monthly low of 1.5918, and the exchange rate may continue to push lower over the next few hours of trading as the Bank of England hold a cautious outlook for the economy. The GBP/USD has moved nearly 85% of its average true range and still has some room to push lower following the slump in risk appetite, and we may see the pair continue to search for a bottom over the following week as investors scale back long-term expectations for higher interest rates in the U.K. However, the overnight decline looks to be finding psychological support ahead of 1.5900, and we are likely to see the pound-dollar remain weighed as the reserve currency continues to benefit from safe haven flows.
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