Blog


Pound continues to drop off

Sterling fell for a third straight day yesterday, hitting two-week lows against a broadly stronger dollar even though investors remained wary of selling it down too far before this week’s Bank of England meeting.

Currency markets have been relatively calm compared with equity markets which are suffering their fourth straight day of falls, with Britain’s FTSE index down almost 2 percent and lower for the sixth day in a row.

But as the dollar has strengthened, sterling has struggled, it has now fallen almost 3 percent since peaking at $1.4346 on Jan. 25 and is down more than 2 percent since Friday.

The currency has been hurt by the general flight from risk and weighed down by this week’s surveys confirming the poor shape of Britain’s economy and fresh tensions over its divorce negotiations with the European Union.

Economic growth is likely to slow to 0.3 percent in the first quarter, down from 0.5 percent in the last three months of 2017, financial data firm IHS Markit said.

UK data showing weaker service sector output and only modest growth in retail spending have not helped sterling sentiment, but the real driver of weakness has been broader market volatility.

While the Bank is expected to leave interest rates unchanged, many analysts are now predicting a rate rise in May, especially after BoE Governor Mark Carney recently sounded a more upbeat tone on the economy. The BOE also releases its inflation report on Thursday.

Leave a Reply

Your email address will not be published.

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 Currency Cloud Limited and Equals Connect Limited. For clients based in the United Kingdom payment services for Currencies 4 you are provided by The Currency Cloud Limited. Registered in England and Wales No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199). For clients based in the European Economic Area, payment services for Currencies 4 you are provided by CurrencyCloud B.V.. Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 - 298, Mindspace Nieuwezijds Office 001 Amsterdam. CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (Relation Number: R142701). Payment Services are provided by Equals Connect Limited, registered in England and Wales (registered no. 07131446). Registered Office: Vintners’ Place, 68 Upper Thames St, London, EC4V 3BJ. Equals Connect Limited are authorised by the Financial Conduct Authority to provide payment services (FRN: 671508). Payment services for Currencies 4 You Ltd are provided by Sciopay Ltd. Sciopay Ltd is a company incorporated in England & Wales. Registration No: 12352935. Sciopay Ltd is licensed and regulated by HMRC as a Money Service Business (MSB). Licence No: XCML00000151326. Sciopay Ltd is authorised by the Financial Conduct Authority as an Authorised Payment Institution. Firm Reference Number: 927951. Currencies 4 you's payment and foreign currency exchange services are provided by Global Currency Exchange Network Ltd T/A GC Partners. Global Currency Exchange Network Ltd is authorised by the FCA under the Payment Services Regulations, 2017 (FRN: 504346). Registered as a Money Services Business, regulated by HM Revenue & Customs ("HMRC") under the Money Laundering Regulations 2017. (Registration number is 12137189). Registered in England and Wales. Company number 04675786. Registered Office 3rd Floor 100 New Bond Street, London, England, W1S 1SP. | Terms and Conditions | Privacy Statement | Careers