British Pound Trading Volume Very High Since Budget and Monday Mayhem

The Bank of England will deliver a sizeable interest rate in November as it reacts to the government's new fiscal package and seeks to contain inflation, according to a major investment bank.

Foreign exchange analysts warn the British Pound could be over 20% overvalued at current levels, implying scope for a further decline.

GBP was rose against USD and steadied against EUR  after the Bank of England spent a little of a billion pounds supporting long-term bond markets, however near-term volatility is expected to remain elevated.

A renewed decline in global markets has put fresh pressure on the British Pound and all indications are further losses are likely, potentially resulting in a retest of recent lows.

The British Pound saw heightened volatility on an announcement by the Bank of England it would intervene in the bond markets.

The British Pound is undergoing a major adjustment lower that will only end once it has fallen below parity, says a leading economist.