09/07/2019 – This Morning’s Exchange Rates
- Posted by currencies in Rate Alerts
- July 9, 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 British pound fell further this morning amid worries about the threat of a no-deal Brexit under the next prime minister and a deteriorating UK economy.
In the latest sign of economic weakness, sales at British retailers rose at their slowest average pace on record over the past year, a survey from the British Retail Consortium showed this morning.
Concerns about the worsening economic outlook in Britain – some analysts expect the economy contracted in the second quarter – encouraged Bank of England Governor Mark Carney to signal last week that the central bank may strike a more dovish tone at its August policy meeting.
Markets are now pricing in a BoE rate cut over the next 12 months, as central banks around the world adopt an easing bias in the face of economic uncertainty and trade tensions between the United States and China.
Sterling has fallen for several days, its losses compounded by a dollar rallying after analysts scaled back expectations the Federal Reserve would cut interest rates by 50 basis points later this month.
RBC Capital Markets strategist Adam Cole noted that betting markets were now pricing in a 95% chance of Eurosceptic Boris Johnson, who some investors fear will push Britain towards a no-deal Brexit, becoming the next leader of the Conservative party and prime minister.
While a significant measure of Brexit risks has already been priced, the pound may still have more of its downside exposed, should the prospect of a no-deal Brexit ramp up meaningfully over the coming months.
Economic growth data for May, due tomorrow, will help analysts decide whether the British economy is likely to have shrunk in the second quarter after a series of disappointing business surveys.
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