020 7898 0500Sterling looks vulnerable heading into today’s Q2 (April to June) preliminary GDP growth release. Sterling is historically highly politically sensitive and investors are known to use the currency to oppose government policies. In the event of a no-deal Brexit scenario, we may see the pound falling to post-EU referendum lows of $1.20. A $100,000 Florida property purchase would therefore be £13,600 more costly than at the pound’s peak in April.
Liam Fox’s warning of a 60 percent likelihood of a no-deal Brexit started the slide in the pound’s value at the start of the week. Since then, traders broadly sold sterling down to levels not seen since late August 2017. Sterling has lost over 10 percent in less than three months versus the dollar and we should remember that the 2017 low was below $1.20. GDP growth expectations are for 1.3 percent annual growth for Q2, following a disappointing print in Q1.
