Foreign Exchange Daily Market Update 13/10/2016

Thu, October 13, 2016

Pound Down 6.4% Against US Dollar In October

The Pound is continuing its fall for the seventh day in nine days. Sterling declined against most of its 31 major peers, having surpassed 30 of them on Wednesday, after PM Theresa May agreed to give British lawmakers a say over the plan for removing the U.K. from the EU. The optimism faded on Thursday as investors return their focus to concerns over May’s perceived hard-line stance on leaving the single market. Thursday’s drop leaves the pound down 6.4% against the Dollar in October, headed for its worth month since June.

U.K. exporters and companies that produce significant sales overseas have benefited from sterling’s decline, which makes their prices more competitive and converts into higher earnings when converted into pounds.

For businesses with costs divided in other currencies, the threat is greater. U.K. retailers buying large quantities of products from overseas is a typical example  and typically hedge on a rolling basis, meaning they’ll face higher costs next year.

The Pound fell 0.5% to 1.2146 as of 8:25 a.m., after climbing 0.7% Wednesday. It weakened 0.5% to 1.1036 against the Euro.

Data to look out for today.

13:30: USD Initial Jobless Claims

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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