The British pound broke below 2.0 as rising risk aversions sent the US dollar higher. The only piece of economic data released from the UK this morning was the July BBA mortgage approvals which fell from 75k down to 67k.
The pace of deceleration has slowed which is mildly encouraging. With no economic data due for release tomorrow, continued concerns about the subprime sector and losses in the US stocks will dictate whether we see further losses in the British pound. Meanwhile keep an eye on GBP/JPY.
Written by Kathy Lien, Chief Currency Strategist of DailyFX.com