Blog


Sterling slightly up this morning

Sterling inched up today, recovering some of the ground it lost late last week from surveys suggesting Britain was heading towards recession and boosting expectations the Bank of England will have to stimulate growth next month.

Sterling was up 0.2 percent at $1.3140, having fallen nearly 1 percent on Friday. The euro, also was 0.3 percent lower at 83.43 pence, having gained on Friday.

Traders said the bounce in sterling was likely to meet selling at higher levels with markets pricing in chances of at least two rate cuts in the next six months.

We believe that the softness in the UK economy is likely to be reflected by official post-referendum data as well over the coming weeks.

We expect a combination of weak economic data and expectations for aggressive easing by the BoE in August will keep the pound under pressure in the near-term.

Data on Friday showed “flash” purchasing managers’ indices plunging in the aftermath of the Brexit vote. The survey of services sector purchasing managers fell to 47.4 in July, its steepest drop since records began in 1996 and the lowest reading since March 2009. The manufacturing PMI also fell to 49.1 from 52.1 in June.

Open a free account here

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Your email address will not be published.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. Currency Cloud Limited. Registered in England 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. FCA registration number: 900199. 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). | Terms and Conditions | Privacy Statement | Careers