05/08/2019 – This Morning’s Exchange Rates

Please find the exchange rates listed at the bottom of the article, the rates are for indication purposes only, for a live quote please contact us.

Sterling plunged to a 23-month low against the euro and near a 31-month low versus the dollar this morning as fears of a disorderly Brexit grew.

After the by-election victory for the Liberal Democrats in Brecon and Radnorshire last week, the Conservative party has been left with a majority of just one seat in parliament, making it harder for the Tories to pass any Brexit-related decisions and therefore heightening uncertainty.

The election also highlighted the need for collaboration between the Tories and Brexit Party, compounding the risk of a no-deal Brexit.

There’s plenty of UK data out this week, starting with the July Services PMI today. Economists polled expect the July UK services purchasing managers’ index, due at 0830 GMT, to remain at 50.2 unchanged from June.

The figures came in above expectations at 51.4. We also have the second quarter growth data on Friday.

The ended ended lower against majority of its peers on Friday after the release of in-line U.S. jobs report and as trade tensions continued to weigh on the currency. 

U.S. job growth slowed in July and wages picked up moderately, which together with an escalation in trade tensions between the United States and China could give the Federal Reserve ammunition to cut interest rates again next month.    

Nonfarm payrolls increased by 164,000 jobs last month, the government said. The economy created 41,000 fewer jobs in May and June than previously reported. July’s job gains were in line with economists’ expectations. The average workweek fell to its lowest level in nearly two years.  

GBP/EUR 1.0870

GBP/USD 1.2126

GBP/AED 4.4463

GBP/AUD 1.7943

GBP/CHF 1.1829

GBP/CAD 1.6049

GBP/NZD 1.8616

EUR/USD 1.1134

GBP/ZAR 17.982

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