Pound (GBPUSD) Witnesses Panick Sell-off, Dollar Down As Investors Prefer Safe-Haven Assets

The sell-off in British Pound (CURRENCY:GBP) continued for the third consecutive day as the market participants continued to remain jittery over the probable outcome of the referendum, which will decide on Britain’s European Union membership.

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Dipped below $1.4

During the later Asian hours, (GBPUSD) succumbed to a level below $1.4000. The pair was seen trading 0.66% down at 1.3929. The level represents the lowest one since March 2009. The investors are heavily unloading Pound due to doubts regarding Britain’s future as a member of the EU.

Sterling has shed as much as 2.9% during the last three days as a higher number of senior members of the Conservative party, including London Mayor, Boris Johnson, have pledged to support Britain’s exit. Such declarations served a setback to Prime Minister David Cameron’s efforts to keep Britain united to EU. The Sterling maintained its fall against the euro as well. (EURGBP) was seen trading at 0.7881, up by 0.25%.

Oil prices go down again

Meanwhile, the demand for safe-haven assets remained unabated as oil (NYSEARCA:OIL) prices and equities headed southward. Saudi Arabia’s statement showing its unwillingness to cut oil production has led to renewed concerns over the oil glut. Simultaneously, Iran further dampened the outlook by stating that it has no interest in trimming down output following the lift of Western sanctions. For lack of any encouraging development, market participants rushed to accumulate safe assets, thereby, causing weakness in the Dollar and stocks.

USD/JPY (USDJPY) fell 0.17% to 111.91 during the late Asian hours. EUR/JPY too lost 0.52% to 122.90, representing a level near three-year lows against the Japanese yen. Euro traded weaker against the dollar at 1.0984, down by 0.30% as it breached three-week lows. The major factor dragging euro is Brexit fears, which is impacting the market sentiment in Eurozone.

The U.S. Dollar Index traded 0.26% up at 97.70. The forex market did not react sharply to the Federal Reserve Vice Chairman, Stanley Fischer’s, comments yesterday as he said that it is too early to provide guidance on the U.S. economy.

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