Foreign Exchange Daily Market Update 22/08/18

Wed, August 22, 2018

U.K. manufacturing increases on pound weakness

Manufacturing in the U.K. is benefiting from a weaker pound.

As the overall growth cooled off slightly in August, output and orders increased at a pace above the long-term average. Exporters, helped by the fall in sterling since the Brexit vote, are doing especially well. Export orders remained strong.

Manufacturing increased in 13 sectors out of 17, with food, drink and tobacco giving the biggest boost to growth.

The Bank of England unanimously voted to raise the benchmark interest rate to 0.75% at the beginning of August. The BOE estimates that the economy is growing fast enough to generate inflation pressures and that a series of limited and gradual rate hikes will be needed to keep prices in check.

The pound rose to $1.287 against the dollar today. Sterling weakened against the Euro to 1.11.

• Output inflation pressures remain at a historically high level.
• Exporters’ order books are looking robust as Brexit looms

Data to look out today.   

Not much data due 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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