Foreign Exchange Daily Market Update 09/09/2016

Fri, September 09, 2016

Pound Recovers As Volatility Levels Fall

Measures of the Pound’s volatility have fallen to levels not seen since before Britain left the EU.

The sense of calm shared by currency markets has been joined by a rejuvenation in the Pound from a three-decade low against the dollar as U.K. manufacturing, services, consumer spending and housing all held up in the wake of the June 23 vote to exit the EU. The Pound fell the most on record once the referendum result was confirmed, and it’s still the worst-performing major currency since then.

The U.K. currency fell on Thursday, adding to the previous day’s drop that was the biggest in a month, even as data showing the housing market gained momentum in August became the latest source of good news.

U.K. government bonds prolonged their losses along with German bunds after ECB President Mario Draghi said in a press conference in Frankfurt yesterday that policy makers didn’t discuss an extension to the ECB’s bond-buying plan, cooling speculation that it would be expanded.

The Pound slipped 0.2% to 1.3311 against the Dollar, after falling 0.7% on Wednesday. It has recovered about 4% since slumping on July 6 to its lowest level since 1985. Sterling weakened 0.5% to 1.1809 against the Euro, prolonging its decline after the ECB on Thursday left the levels unchanged for its interest rates and asset-purchase program.

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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