Toroption 13:46:06 GMT / 22 June 2016
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GBP at post Brexit lows – Today’s Forex review – 26/09

The British Pound fell to near post brexit levels


The GBP has plunged back to near Brexit lows.

The currency is down 0.2% at 1.2933 against the USD as of 12:00 GMT – not that far off of the post-Brexit low of 1.2798.

A new survey found that just over three-quarters of the 100 CEOs surveyed were considering relocating their companies because of the Brexit vote.

“CEOs are reacting to the prevailing uncertainty with contingency planning. Over half believe the UK’s ability to do business will be disrupted once we Brexit and therefore, for many CEOs, it is important that they plan different scenarios to hedge against future disruption,” Simon Collins, KPMG’s UK chairman, said in an emailed statement.

“In our own work, we have seen international clients who had been considering basing European headquarters in the UK, opt for Ireland instead.”

The EUR is up 0.2% at 1.250 against the USD after Germany’s Ifo Business Climate came in at 109.5 for September, above economists’ expectations of 106.3. This was the highest level since May 2014. “The German economy is expecting a golden autumn,” Professor Dr. Clemens Fuest, the president of the Ifo Institute, wrote in the report.

The USD index is down 0.2% at 95.32 ahead of new-home sales and Dallas Fed manufacturing, which will be out at 14:00 GMT and 14:30 GMT respectively.

The Russian ruble is up 0.2% at 63.9293 per dollar. Meanwhile, Brent crude oil, the international benchmark, is higher by 1.3% at $47.09 per barrel as oil producers meet in Algiers for informal talks.

The Japanese yen is stronger by 0.6% at 100.40 per dollar. Notably, Bloomberg reported that Eisuke Sakakibara, Japan’s former top currency official, argued that the yen could strengthen to 90 per dollar next year.

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