Sterling Sinks to One-month Lows Amidst Rising Political Uncertainties

Sterling tumbled to one-month low versus the U.S. dollar in European trading session on Friday amidst rising political uncertainty while the dollar kept ticking higher due to optimism over one more rate hike this year.

The British Pound dropped 0.43 percent to trade at $1.3061, down from $1.3118 recorded late Thursday in New York. The pair GBPUSD was lingering at levels that have not seen since early September and looks set for a 2.5% weekly tumble, its biggest since the week ending October 7, 2016.

Speculation that a general election could be called in the U.K. grew but Theresa May’s future was in doubt after she failed to win a majority in June’s national election. Especially after her speech at the Tory party conference on Wednesday which is called “disastrous”, there are rumors that the Prime Minister will be asked to step down by her own party.

Trade suggestion

Sell Stop at 1.30600, Take profit at 1.30200, Stop loss at 1.30800

 

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