The British pound extended losses against the USD on Tuesday, falling towards a level not seen since April 2017, amid intensified concerns about a no-deal Brexit after both Boris Johnson and Jeremy Hunt ruled out changes to the Irish backstop on their final leadership debate on Monday. The pound dropped 0.8% against the dollar to 1.2418, the lowest since April 2017 and weakened 0.5% against the euro to a six-month low of 0.9038 around 11:50 am London time. Since the beginning of July, the currency has fallen more than 2%. Historically, the British Pound reached an all time high of 2.86 in December of 1957 and a record low of 1.05 in February of 1985.
The British Pound is expected to trade at 1.26 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.24 in 12 months time.