The GBP/USD cross has fallen to 1.2460 – its lowest level since April 2017 baring a short-lived flash crash back in January. Markets have seemingly ignored an announcement by the leader of the opposition Labour Party, Jeremy Corbyn, that after months of dithering he would push the new prime minister to call a second confirmatory referendum, whether or not a new deal was put forward to Parliament.
Instead there is seemingly still a great deal of concern about the risk of a no-deal Brexit, with both prime ministerial candidates trying to shore up their Brexit credentials ahead of a crucial party-member vote next week. Moreover, Sterling’s weakness in recent weeks may be due to British holiday-makers buying foreign currency ahead of the summer holidays, with Sterling having on average been weakest in June-August in the past ten years.
