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Sterling recovers from losses after 9 percent plunge

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Sterling recouped some losses after plunging to a three-decade low in Asian trade on Friday amid growing fears of a “hard” exit by Britain from the European Union, while Asian stocks fell as investors took profits from a recent rally.

European markets were expected to open slightly higher with tiny gains forecast for Britain’s FTSE, Germany’s DAX and France’s CAC.

The pound nosedived 9 percent at one point to US$1.1491 (£0.92) after crashing through key support levels, triggering a wave of selling. An early trade even lower than that was later cancelled.

But it quickly bounced and it was around 1.2455 by early afternoon, still down about 1.3 percent from late U.S. levels and leaving traders scratching their heads in the absence of any major news overnight.

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Paul

The author Paul