The British pound extended its losses to $1.215, marking its lowest level since October 2023, following a 1.7% drop the previous week.
Pound drops to $1.215 on fiscal worries
Concerns over fiscal stability and rising gilt yields weigh heavily on UK assets. Traders are increasingly betting on further declines, with options data revealing strong demand for contracts below $1.20 and some even predicting a drop to as low as $1.12. Last week’s market turmoil, driven by persistent inflation, high borrowing costs, and uncertainties over Donald Trump’s policies, left the pound vulnerable. This situation led to comparisons with the 2022 market collapse.
Pound drops on strong US jobs data and rate cut concerns
The pound’s slide was further exacerbated by stronger-than-expected US jobs data, which fueled fears that the Bank of England may have limited room to cut rates to support the economy.
