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Instability continues to challenge Sterling whereas the US dollar did well against all European currencies, buoyed by a strong payroll report.

The US Dollar rose against its major peers on Thursday ahead of this afternoon’s highly anticipated labour report in the US, closely watched by the Federal Reserve when deciding on the path of its monetary policy.

The Pound received some much needed respite on Wednesday, rebounding from its three decade low against the US Dollar. Sterling’s gains were limited, however, with investors continuing to fret about the growing likelihood of an interest rate cut by the Bank of England next week.

Sterling tanked 1.2% yesterday, falling to its weakest position in 31 years against the US Dollar after Mark Carney claimed that Brexit risks were ‘beginning to crystallise’.

Sterling edged downwards this morning, perilously close to its 31 year low against the US Dollar, while falling to a fresh two-and-a-half year low against the Euro ahead of this morning's Financial Stability report from the Bank of England.

Sterling seems to have found a tentative bottom for the short term in the 1.30 - 1.35 range against the US Dollar, buoyed by the perception that there will be no triggering of the infamous Article 50 for quite some time, perhaps not until 2017.

Sterling crashed after Governor of the Bank of England Mark Carney warned that Britain’s economy will probably need further economic stimulus.

A rebound in risk appetite boosted the Pound and Euro for a second day, following a volatile and uncertain few days in currency trading post-Brexit.

Some respite for Sterling and Euro following a brutal few days for both currencies after last week’s shock Brexit vote. Read full currency analysis.

Sterling tanked 3% vs USD and 2.5% vs EUR yesterday, with investors speculating on the economic and political ramifications of Brexit for the UK and Europe.