Foreign Exchange Daily Market Update 05/02/2016

Fri, February 05, 2016

Unanimous Rate Decision Causes Pound To Slide

The Pound declined after the only objector on recent rate decisions (Ian McCafferty) discarded his call for higher interest rates and officials cut their growth and inflation forecasts.

Sterling fell against all but 1 of its major peers. For the first time in 7 months, policy makers unanimously decided to keep interest rates unchanged with a 9-0 vote. In Mark Carney’s speech he started by endorsing the external risks that prompted officials to cut growth and inflation forecasts for this year before moving on to say the whole MPC still thinks the next rate move will be up.

The Pound weakened 0.9% to 1.3040 against the Euro as of 4:29 p.m. Sterling fell 0.2% to 1.4581 against the Dollar, after Carney’s comments on the rate path. It had dropped as much as 0.5% earlier.

Data to look out for today.

13:30: USD Unemployment Rate

13:30: USD Change In Non-Farm Payrolls

CURRENCY PAYMENTS MADE SIMPLE

PRESS RELEASE

KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

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