Foreign Exchange Daily Market Update 14/10/2016

Fri, October 14, 2016

Pound Falls After Turbulent Two Weeks

It’s been a turbulent two weeks for the Pound, and all signals suggest are that traders will have to get used to the instability.

The U.K. currency is getting harder to predict due to the nation’s departure from the EU has changed the rules of engagement. Whereas before June 23 it was enough for investors to track the economy and BOE, now they have to follow, and react to, the political twists and turns of quitting the world’s largest trading bloc.

The most eye capturing aspect of October’s volatility was last week’s flash crash, which saw the currency plunge more than 6% in just a few minutes of Asian trading. Sterling has a general downward trend punctuated by extreme movements in either direction, often in response to relatively innocuous news. On Wednesday, sterling surged against the Dollar below falling back later in the afternoon.

The Pound fell 0.5% to 1.2188 against the Dollar as of 8:44 a.m. this morning, taking its decline this month to 6%. Sterling fell 0.3% to 1.1055 against the Euro.

Data to look out for today.

13:30: USD Advanced Retail Sales

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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