Great Britain Pound at Three-Decade Low Against US Dollar

The Great Britain pound slumped today, falling to the lowest level since 1985 against the US dollar, as Brexit fears continued to drive the currency. Yet again, positive macroeconomic data was unable to rescue the sterling.

Market participants are worried that Britain’s leaders may opt for the so-called hard Brexit, exchanging free trading with the European Union for immigration control. That does not bode well for Britain’s economy and by the same token its currency. The Markit/CIPS UK Construction Purchasing Managers’ Index jumped from 49.2 to 52.3 in September, far above analysts’ expectations, but it hardly helped Britain’s currency.

GBP/USD dropped from 1.2838 to 1.2754 as of 10:57 GMT today, breaking below the post-Brexit vote lows. EUR/GBP advanced from 0.8729 to 0.8755, trading near the highest level since August 2013.

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