Pound sinks after dovish Mark Carney speech
- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- November 3, 2017
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Sterling extended losses today, slipping to a one-month low against the dollar, as the Bank of England’s plans to take a “very gradual” approach to raising interest rates sent investors rushing to exit positions.
The central bank said it expected Thursday’s rate hike, the first in over a decade, would be followed by just two more quarter-point increases over the next three years. That led to the pound’s biggest one-day drop in almost five months.
Monthly data on Britain’s dominant services industry, was released 0930 GMT this morning. Last month’s services purchasing managers’ index (PMI) produced a better-than-expected result, showing the sector picking up to 53.6 in September, however this month came in at 55.6 beating the expectation of 53.3.
Sterling fell 0.1 percent to $1.3040 on Friday, its lowest since Oct. 6, extending losses from the previous session when the BoE decision sent the pound plummeting almost 2 U.S. cents in just three minutes.
It was trading flat against the euro on Friday, after suffering its worst one-day drop on Thursday against the single currency since a “flash crash” on Oct. 7, 2016.
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