The Great Britain pound slumped on Friday and slumped hard. There were not many fundamental reasons for such sharp drop and Forex market analysts were speculating that the currency has just overextended its rally.
Some specialists were arguing that a violent correction should be expected after such long rally that the pound has demonstrated. Others pointed out that recent fundamental reports gave reasons to doubt sustainability of recovery. Whatever the case, the currency ended this week with losses.
The sterling posted the first weekly loss after four week of gains against the US dollar. The currency was also rising for three weeks against the yen before dropping this week. Against the euro, the pound was moving basically sideways for the last four weeks, but volatility of moves was increasing.
GBP/USD sank from 1.6153 to 1.6018 and GBP/JPY tumbled from 157.10 to 156.09. EUR/GBP soared from 0.8427 to 0.8459.
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