The British pound slid to its lowest level against the U.S. dollar since 1985, reflecting the U.K. economy’s dire economic situation. Investors are braced for sterling to weaken even further to a nadir not seen in more than two centuries of trading across the Atlantic.
The pound fell 0.3% in early Monday, trading at $1.1475. That is the lowest since 1985. Sterling’s descent is partly a side effect of the relentless U.S. dollar rally, which has driven, both the euro and Japanese yen to multidecade lows in the latest few days.
But the problems are also homegrown. The U.K. faces an energy crunch that threatens to leave many households unable to pay their bills this winter. Uncertainty over the economic policies the U.K.’s next prime minister will enact and the Bank of England’s ability to control sky-high inflation compound the pound’s weakness.
GBP/USD Short (Sell)
Enter at: 1.1368