Down 10.4% year-to-date, the CurrencyShares British Pound Sterling Trust (NYSEArca: FXB), which tracks the British pound’s movement against the U.S. dollar, is easily one of this year’s worst-performing currency exchange traded funds.
Much of FXB’s bearishness is attributable to speculation about Brexit, Great Britain’s departure from he European Union, and the subsequent June vote that shocked global financial markets confirming that Britain will in fact depart the EU. FXB is lower by nearly 7% over the past three months and is confronting headwinds beyond Brexit.
SEE MORE: Currency-Hedged U.K. ETFs for Improving Earnings, Depreciating Pound
Last month, the Bank of England pared its benchmark rates to a record low 0.25% from 0.5% and anticipates it will further bring it down toward zero ahead, the Wall Street Journal reports. The BOE also revived its government bond-buying program, which has been on pause since 2012, along with purchasing corporate bonds as well.
FXB could again be in focus in the coming days amid a spate of important economic data points out of the U.K.
Unemployment data is forthcoming and “Thursday will feature a meeting of the Monetary Policy Committee. While the Monetary Policy Committee is widely expected to leave rates unchanged at 0.25%, there will be considerable interest in this week’s economic data,” according to OptionsExpress.
SEE MORE: Brexit Continues to Drag on Pound ETF, Sends GBP to Three-Decade Low