Dovish BoE Sends Pound Sterling (GBP) Back to 28-Month Low

Pound Sterling (GBP) Dented by Cautious BoE

The Pound (GBP) was left on the defensive again yesterday, retreating back to some of the lows struck earlier in the week in the wake of the Bank of England’s (BoE) latest policy meeting.

This saw the BoE keep rates on hold again this month whilst downgrading the UK’s 2019 growth forecast from 1.5% to 1.3%. Applying further pressure on Sterling was a cautious Mark Carney, with the BoE Governor warning of the consequences of a no-deal Brexit.

With the release of the UK’s latest construction PMI later this morning we expect the downtrend in the Pound to continue, with the index forecast to have remained deep within contraction territory in July.

GBP/EUR Exchange Rate Slips despite Gloomy Eurozone Manufacturing Figures

The Pound to Euro (GBP/EUR) exchange rate fell on Thursday after Sterling was undermined by the cautious tone struck by the BoE.

However the Euro struggled to replicate these gains in wider trade, as the publication of the Eurozone’s manufacturing PMI confirmed growth in the bloc’s factory sector slumped to a six-year low in July.

Coming up later this morning we have the publication of the Eurozone’s latest retail sales figures, which could propel the Euro higher if sales growth rebounded in line with expectations in June.

GBP/USD Exchange Rate Strikes Fresh 28-Month Low

The Pound to US Dollar (GBP/USD) exchange rate fell to its worst levels since January 2017 yesterday morning as the ‘Greenback’ remained buoyed by a hawkish policy outlook from the Federal Reserve.

The US Dollar did slip from its best levels later in the session however as the ISM manufacturing PMI undershot expectations, revealing US factory activity fell close to a three-year low in July.

Centre stage today is the publication of the latest US payroll report, which could see the US Dollar slip again if employment growth slowed in July as forecast.

GBP/CAD Exchange Rate Steady as Oil Prices Slump

The Pound to Canadian Dollar (GBP/CAD) exchange rate traded in a narrow range throughout Thursday’s session, with the oil-sensitive currency unable to take advantage of the broad weakness in Sterling following a sharp slump in crude prices.

GBP/AUD Exchange Rate Soars on Renewed Trade Tensions

The Pound Australian Dollar (GBP/AUD) exchange rate shot higher on Thursday evening in reaction to a sharp slide in risk appetite after Donald Trump threatened to slap fresh tariffs on China.

The ‘Aussie’ was able to claw back some of these losses later as Australia’s retail sales figures revealed that domestic sales growth jumped to a four-month high in June.

GBP/NZD Exchange Rate Steady as Risk Sentiment Falls

The Pound to New Zealand Dollar (GBP/NZD) exchange rate traded in a narrow range overnight on Thursday, with the ‘Kiwi’ struggling to find momentum in the face of renewed US-China trade tensions.

Matthew Andrews

Contact Matthew Andrews