Foreign Exchange Daily Market Update 08/07/2016

Fri, July 08, 2016

Pound Halts Its Decline 

Sterling decline had been halted following a 2.7% slide against the Dollar on Tuesday through to Wednesday. That sent the Pound to its weakest level since 1985 as property funds with more than 15 billion Pounds ($19.5 billion) of assets froze withdrawals in the wake of Britain’s referendum to leave the European Union. The Pound also climbed against the Euro, ending five days of losses.

There was little change on the Pound yesterday afternoon at $1.2935, having strengthened as much as 0.9%. On Wednesday, it touched a 31-year low of $1.2798 as the property funds’ closure echoed the real-estate tremors at the start of the financial crisis in 2007.

We could see the Pound remain weak until the end the year, reaching levels of $1.30 or below, or even possible going as low as $1.16. 

We expect the U.K. economy to slow due to the uncertainty of the effect from Brexit and for the Monetary Policy Committee to react with rate cuts and quantitative easing as already flagged 

Data to look out today.   

13:30 USD Non – Farm Payrolls / US Unemployment.

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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