Big week for the pound

  • Posted by Shyam Gokani in Uncategorised
  • October 31, 2016
  • No Comments

Sterling slipped below $1.22 on Monday as worries about the fallout from Britain’s vote to leave the European Union outweighed reports that Mark Carney will serve a full term as governor of the Bank of England.

After falling more than 6 percent against the dollar since the start of October, the pound was on track for its worst month since June, when it plunged following the June 23 vote for Brexit.

The Financial Times and the BBC reported over the weekend that Carney, who became governor in 2013, was ready to serve a full eight-year term instead of five. Politicians critical of his stance on the EU referendum had called for him to step down in 2018.

Other newspapers had said over the weekend that Carney was more likely to announce that he would leave in 2018.

Purchasing managers’ index (PMI) surveys for the manufacturing, construction and services sectors are due tomorrow, Wednesday and Thursday respectively.

Investors are also focused on Thursday’s BoE policy decision and quarterly inflation report, which will be accompanied by a news conference.

Sterling’s weakness, a rise in inflation expectations and upbeat growth data have prompted most to rule out a cut this week. Most economists expect rates to stay at 0.25 percent for the rest of the year.

Leave a Reply

Your email address will not be published. Required fields are marked *

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and Foreign Currency Exchange Services are provided by Equals Money and Ebury Partners UK Limited. Equals Money is a trading style of FairFX PLC. FairFX PLC is authorised and regulated by the Financial Conduct Authority to provide payment services. (Financial Services Register No: 488396). Currencies 4 You Ltd is partnered with Ebury Parnters UK Limited as its Programme Mananger. Ebury Partners UK Limited are authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. (Reference Number 900797). Ebury Partners UK Ltd is registered with the information commissioners office with registration number: ZA345828. | Terms and Conditions | Privacy Statement | Careers