Sterling slumps to new low as fears grow of no Brexit deal

Pound Slips to Lowest Since November Versus Euro on No-Deal Fear

Pound continues its slide on no-deal Brexit fears

While the British pound remains in the doldrums, today's economic data from the United Kingdom was surprisingly upbeat.

After an initial uptick to 1.2960 level, the GBP/USD pair met with some fresh supply and dropped to fresh eleven-month lows in the last hour. At the time of writing on Thursday afternoon, GBP/EUR trended in the region of 1.1120.

While there appeared to be no notable trigger to yesterday's pound sell-off, analysts suggest it is likely a result of growing anxiety that time is running for the United Kingdom to avoid a "no-deal" Brexit.

Unless there are optimistic Brexit developments in the coming days, or investors opt to sell the Indian Rupee from its recent highs, the Pound to Indian Rupee (GBP/INR) exchange rate is unlikely to recover for some time. The lack of clarity or certainty about whether the United Kingdom and European Union will be able to agree to a deal has dominated Pound movement.

The pound's weakness versus the euro "is a clear sign that markets are starting to focus on the pound-specific risks associated with a no-deal Brexit", said Viraj Patel, a currency strategist at ING Groep NV.

Still, analysts expect the Pound's recovery was limited and was due to rebound rather than any optimistic news.

By Joshua Gibson Sterling catches some lift in Asia as the US Dollar takes a step back, but downside pressure remains.

While a slew of key United Kingdom ecostats will be published on Friday, concerns about the possibility of a "no deal" Brexit are likely to overshadow even optimistic results.

Last week, the Bank of England (BoE) raised interest rates above their crisis lows for the first time in almost a decade.

The early estimates of the UK GDP from the National Institue of Economic and Social Research (NIESR) has recently announced that their GDP Tracker was pointing to a growth of 0.4%t in the second quarter of 2018 and 0.5% in the third quarter this year.

This has largely been due to market concerns about the possibility of a US-sparked trade war lightening somewhat, and U.S. protectionist rhetoric with ally nations softening.

Brexit and a hesitant BoE continue to tie down the Pound as UK GDP numbers approach on Friday.

This would bolster Sterling support and could help GBP/EUR recover a little further, though Brexit uncertainties would likely put a lid on any potential recovery rally.

The falls come despite a rise in United Kingdom interest rates, which usually pushes up the value of sterling.

This would likely turn around some of the Pound's poor form, and a favourable uptick in the industrial production figures might also serve Sterling well against its major peers ahead of the weekend.

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