Foreign Exchange Daily Market Update 05/08/2016

Fri, August 05, 2016

Pound Declines As Rates Are Cut For The First Time Since 2009

The Pound fell against the Dollar after the BOE cut its benchmark interest rate for the first time since 2009. Three weeks ago investors were shocked when the bank kept rates unchanged.

Sterling declined at least 1.4% against all of its 16 major peers after the nine-member Monetary Policy Committee voted imminently to lower the benchmark rate by 25 basis points from 0.5% to a record-low 0.25%. Officials led by Governor Mark Carney increased the central bank’s asset-purchase target for the first time in four years, raising the target by 60 billion pounds from 375 to 435 billion pounds.

The Pound has fallen almost 12% against the Dollar since the U.K opted to leave the EU, weakening for a third consecutive month in July, as economic consequences of the decision began to surface.

The pound fell 1.5% to 1.3126 against the Dollar as of 4:02 p.m., the steepest decline since July 5, a day before it touched a 31-year low of 1.2798. Sterling weakened 1.4% to 1.1786 against the Euro.

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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