Foreign Exchange Daily Market Update 08/08/2016

Mon, August 08, 2016

Sterling’s Rebound Reversed after US Jobs Date

While sterling has crashed against the dollar since the BOE governor announced a suite of measures to support the U.K. economy, the currency only fell to levels seen three weeks ago. It’s still about 2% higher than the 31-year low reached in the aftermath of Britain’s vote to exit the EU in June.

The BOE cut interest rates to a new record-low 0.25% and announced policies which will expand its balance sheet by as much as 170 billion pounds. The measures were designed to counter the fallout of the U.K.’s decision to leave the EU, which has pushed the pound down by about 12% against the Dollar, and already led to a contraction in manufacturing and services.

Sterling rebounded by as much as 0.5% on Friday before reversing gains after U.S. jobs data came in stronger than analyst’s predicted. Jobs were expected to come in at 180k but actually come in as 255k.

The Pound fell 1.2% last week to 1.3069 against the Dollar as of 5 p.m. Friday, having tumbled 1.6% on the day of the BOE announcement. That’s still higher than the 31-year low of 1.2798 reached on July 6. Sterling dropped for a third week against the Euro, losing 0.4% to 1.1795.

Data to look out for today.

Not Much Data Out Today

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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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