Foreign Exchange Daily Market Update 10/08/2016

Wed, August 10, 2016

Pound Falls Below 1.30 Against US Dollar

The Pound declined below 1.30 against the Dollar for the first time in almost a month as investors prepared for data that will give further clues on the state of the U.K. economy in the wake of the decision to leave the EU.

Sterling fell for a fifth consecutive day and declined against all of its 16 major peers amongst speculation the data next week will show an economy reeling from the Brexit vote on June 23. Sterling is undergoing its longest losing streak since May after the BOE cut interest rates to for the first time since 2009 in its Aug. 4 policy announcement, while exceeding economists’ expectations on quantitative easing.

The Pound fell further after BOE policy maker Ian McCafferty warned on Tuesday that further rate reductions and QE may be required. That’s all the more surprising because as recently as January, he was voting to raise rates.

The Pound fell 0.3% to 1.3003 as of 5 p.m., after slipping below 1.30 for the first time since July 12. Sterling has dropped 1.7% this month, the worst performance among major currencies. Sterling also fell against the Euro to 1.1688.

Data to look out for today.

Not Much Data Out Today

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PRESS RELEASE

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