Another milestone in the pound’s post Brexit fall is seen in the post-Independence Day trading session. The main culprit has been the construction sector and the fund freezes – emergency measures that prohibit investors to withdraw funds.
GBP/USD dips its feet under 1.30 but is not going too far.
Three property funds announced a fund freeze in the past 24 hours: it began with Standard Life, continued with Aviva and became stronger with M&G – the latest to announce but probably not the last.
The construction sector has led the recovery and could lead the downturn.
BOE Governor did not help: while he explained how his institution was doing everything it could to stabilize the situation and provide liquidity, he did not paint a positive picture. Once again, Carney said that risk are being materialized and that prospects are not really positive.
Here is how this dip looks on the chart.
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