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Foreign Exchange Daily Market Update 03/08/18

Fri, August 03, 2018

Pound Slumps After Bank of England Raises Rates.

Sterling fell after the Bank of England failed to convince markets of a brighter economic outlook.

The BOE surprisingly voted unanimously to raise the benchmark interest rate by 25 basis points to 0.75% and suggested further increases. Still, sterling fell to its lowest since July 20 as carney signalled the pace of further hikes would be gradual and markets questioned the rationale for tighter policy when the U.K.’s exit from the European Union is still caught with uncertainty.

It is extremely hard for the BOE to convince the market that it may hike rates again when everyone knows there hasn’t yet been a Brexit deal. It is unlikely that we may see another hike in the coming months, Sterling remains very vulnerable to political uncertainty

Sterling failed to shake off its blues, as the markets have priced in the next rate increase as late as September 2019 and policy makers see inflation remaining contained within the 2% target through 2021.

Sterling fell by as much as 0.9% to $1.3016, but some analysis still sees the pound rising to $1.3400, Sterling fell to 1.1119 against the Euro.

  • Sterling slides to lowest since July 20 even after rate hike
  • Carney says policy ‘needs to walk, not run, to stand still’

 

Data to look out today.   

13:30 USD Non – Farm payrolls  

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

Data Releases

Day Time Currency Event
FRI 07:45 EUR EUR Markit/ADACI Italy Services PMI
FRI 07:45 EUR EUR Markit/ADACI Italy Composite PMI
FRI 07:50 EUR EUR Markit France Services PMI
FRI 07:50 EUR EUR Markit France Composite PMI
FRI 07:55 EUR EUR Markit Germany Services PMI
FRI 07:55 EUR EUR Markit/BME Germany Composite PMI
FRI 08:00 EUR EUR Markit Eurozone Services PMI
FRI 08:00 EUR EUR Markit Eurozone Composite PMI
FRI 08:30 GBP GBP Markit/CIPS UK Services PMI
FRI 08:30 GBP GBP Markit/CIPS UK Composite PMI
FRI 09:00 EUR EUR Euro-Zone Retail Sales (MoM)
FRI 09:00 EUR EUR Euro-Zone Retail Sales (YoY)
FRI 12:30 USD USD Trade Balance
FRI 12:30 USD USD Change in Non-farm Payrolls
FRI 12:30 USD USD Two-Month Payroll Net Revision
FRI 12:30 USD USD Change in Private Payrolls
FRI 12:30 USD USD Change in Manufact Payrolls
FRI 12:30 USD USD Unemployment Rate
FRI 12:30 USD USD Underemployment Rate
FRI 12:30 USD USD Average Hourly Earnings (MoM)
FRI 12:30 USD USD Average Hourly Earnings (YoY)
FRI 12:30 USD USD Average Weekly Hours All Employees
FRI 12:30 USD USD Labor Force Participation Rate
FRI 13:45 USD USD Markit US Services PMI
FRI 13:45 USD USD Markit US Composite PMI
FRI 14:00 USD USD ISM Non-Manufacturing/Services Composite
FRI 17:00 USD USD Baker Hughes U.S. Rig Count

Foreign Exchange Rates

GBP / USD 1.29930
GBP / EUR 1.12248
EUR / USD 1.15691
GBP / AUD 1.76445
GBP / CAD 1.69123
GBP / CHF 1.29298
GBP / CZK 28.7646
GBP / DKK 8.36596
GBP / HKD 10.19027
GBP / INR 89.2495
GBP / JPY 145.104
GBP / MUR 44.16
GBP / NOK 10.70509
GBP / NZD 1.92866
GBP / PLN 4.78077
GBP / SEK 11.58191
GBP / SGD 1.77913
GBP / THB 43.2981
GBP / TRY 6.59440
GBP / ZAR 17.43029

*These are indicative rates only, based on interbank prices at the time of writing. For exact rates please contact our dealing team

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