Sterling slips against Euro & Dollar

  • Posted by Shyam Gokani in Uncategorised
  • September 16, 2016
  • No Comments

Sterling slipped against the dollar and euro today and is on track for its worst week in five on a trade-weighted basis, as investors worried about Britain’s vote to leave the European Union and bet on another cut in interest rates this year.

The Bank of England kept rates at their record lows at yesterday’s policy meeting but signalled that it would cut them again before the end of the year. It cut rates to 0.25 percent in early August and relaunched an asset-purchase programme to cushion the economic blow from Brexit.

Since then, though, economic data pointed towards a less significant hit to the British economy than had been expected. That helped lift sterling to a seven-week high of $1.3445 last week, more than 5 percent above the three-decade low it had plumbed in the aftermath of the vote.

But with the British parliament back in session and focus returning to the uncertainty surrounding the UK’s negotiations to leave the bloc as well as the prospect of further monetary easing, sterling has since slipped almost 2 percent.

It fell 0.3 percent this morning.

Whereas a month ago the market was in a phase of relief that the impact of the referendum hadn’t been that big after all … I think there is now more of a focus on the fact that Brexit hasn’t actually begun yet, and there could still be a rocky ride for the economy.

Sterling also fell 0.2 percent to 85.12 pence per euro. Against the BoE’s trade-weighted basket of currencies, it was down 0.8 percent for the week – the worst performance since early August.

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Your email address will not be published.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 Currency Cloud Limited, Equals Connect Limited and Ebury Partners UK 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). Currencies 4 You Ltd is partnered with Ebury Partners 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