British pound was the world’s worst performing currency in October. The GBP recorded its biggest monthly decline against the USD, since the majority of British citizens voted in late June, the country to leave the European Union (EU). During the month, the British currency was under pressure from the intention of the local authorities to implement Hard Brexit, implying limited access to the single European market. In October, there were comments from politicians and representatives of the central bank, which affected the exchange rate and stressed the vulnerability of the currency of potential Brexit.
The monthly decline in the British pound amounted to 5.9%, while in June the decline was 8.1%. The GBP is getting cheaper every month since April and thus the currency remains the worst performing this year with a decline of 17%.
This month Brexit concerns returned to to the focus and the depreciation of the GBP is typical for currency which is traded at underlined political uncertainty.
On Thursday there is a meeting of the Bank of England for monetary policy, and it will publish a report with forecasts for inflation and GDP growth. On Monday, Governor Mark Carney of the Bank of England announced that he would remain at the head of the institution by mid-2019, which is one year longer than originally planned period.