Pound Slumps To 3-year Low Against Euro As Brexit Jitters, BOE Easing Linger

By Markets MarketWatch Pulse

Sterling dropped to a fresh post-Brexit low against the euro on Thursday, as concerns over the U.K.'s vote to leave the European Union and aggressive easing measures from the Bank of England continued to weigh on sentiment. The pound sank to €1.1598, the lowest since Aug. 28, 2013, according to FactSet data. That level was enough to take out the previous post-Brexit low of €1.1605 hit on July 6, almost two weeks after the Brexit vote. Recent data have started to show how the referendum has impacted the U.K. economy. A report out on Thursday showed housing prices grew at their slowest pace in three years in July as uncertainty over the future put house buyers on hold. In response to weak data and lackluster economic forecasts, the Bank of England last week announced an aggressive easing package. The central bank cut rates, expanded QE, announced a corporate bond-buying program and offered ultracheap loans to banks.

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