01/08/2019 – This Morning’s Exchange Rates
- Posted by currencies in Rate Alerts
- August 1, 2019
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Please see this morning’s exchange rates listed at the bottom of the article. The rates are there for indicational purposes only. For live accurate prices please contact us.
The dollar rose to a two-year peak against the euro as U.S. Federal Reserve Chairman Jerome Powell ruled out a lengthy easing cycle after delivering the first rate cut since the financial crisis.
In a widely expected move, the U.S. central bank cut rates by 25 basis points to shore up the economy against risks including trade friction.
At a press conference after the Fed’s decision, Powell said “it’s not the beginning of a long series of rate cuts.” At the same time, he said, “I didn’t say it’s just one rate cut.”
Traders still see one more rate cut this year. Powell’s remarks, however, slashed expectations the Fed is prepared to lower rates well into next year.
Sterling sank to a 30-month low this morning, pressured by a stronger dollar and renewed worries that Britain could crash out of the European Union on Oct. 31 without a trade agreement in place.
In the past three months, sterling has tumbled 7.1% due to growing speculation Britain will go through with a no-deal Brexit.
The BoE will give its rate decision at 1100 GMT and is expected to keep rates on hold but strike a more dovish tone as it seeks to ease concerns about the potential economic hit by a disruptive break from the EU.
Money markets are now pricing in a 25-basis point rate cut by the BoE before early 2020, although policymakers may push back against expectations for lower rates in the coming months.
GBP/EUR 1.0954
GBP/USD 1.2102
GBP/AED 4.4380
GBP/AUD 1.7664
GBP/CHF 1.2039
GBP/CAD 1.5999
GBP/NZD 1.8452
EUR/USD 1.1038
GBP/ZAR 17.371
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