In early trade, the pound fell off a cliff to hit a 31-year low of $1.1841 before immediately rebounding to around $1.2450. IG Markets' analyst Angus Nicholson said it "looks like it was an algorithm-driven flash crash" driven by the comments from Mr Hollande. And Jeffrey Halley, senior market analyst at OANDA, added: "Following comments this morning from ... Hollande demanding 'tough' Brexit negotiations, GBPUSD finally managed to break $1.26 support. In early European trade London rose 0.4% on the weaker pound but Frankfurt lost 0.5% and Paris shed 0.4%. "Sterling's crash seems to have affected sentiment across Asia," Margaret Yang, an analyst at CMC Markets in Singapore, told Bloomberg News.

Source: Bangkok Post October 07, 2016 09:33 UTC