Investors shy the British Pound as Brexit looms

Investors shy the British Pound as Brexit looms

Amid the growing uncertainty of a hard Brexit just a month away traders are pulling away from the British Pound, because of the increased volatility of the currency.

And that is felt not only with the value of the pound, but also with the trading volume. Once the second most traded currency pair, now the GBPUSD trading volume has gradually shrunk to record low.

For the six months ended in October 2018 the average daily trade volume of USDGBP has shrunk to 324 billion USD from 351 billion USD in the previous six months that ended in April 2018., recent Bank of England data shows.

Actually over 2018 almost all major currencies increased their market share, except for the pound.

According market analysts, cited by Reuters, the reduced liquidity of the pound contributes to the increased volatility of the currency.

With a market share of 9,3%, currently the GBPUSD pair is the third most traded currency pair on the global markets after the EURUSD pair and the USDJPY pair, which hold 23,1% and 17,8% respectively.

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