Foreign Exchange Daily Market Update 01/08/2016

Mon, August 01, 2016

Pound Continues To Fall Leading Up To Rate Decision

The Pound looks poised to prolong its decline this week, when traders and economists expect the BOE will cut interest rates for the first time in more than seven years.

Sterling has weakened against all of its 31 major peers in the past three months. Britain’s vote in June to leave the EU, along with recent economic data which underscored the ensuing setback to consumer confidence and business activity, has boosted speculation that the BOE will loosen monetary policy on Aug. 4.

The majority of economists predict policy makers led by Governor Mark Carney will cut the key interest rate from a record-low 0.5% to 0.25%. The BOE are expected to maintain its asset-purchase target at £375 billion.

The Pound fell 0.3% this month to 1.3272 against the Dollar as of 5 p.m. Friday, having crashed almost 9% in the previous two months. It dropped to a 31-year low of 1.2798 on July 6. Sterling weakened for a second month against the Euro, falling 0.9% to 1.1882.

Data to look out for today.

15:00: USD Construction Spending

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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