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RationalFX : Sterling falls to multi-month lows

RationalFX : Sterling fell to three month lows against the US dollar on Thursday, as USD strengthened to sweep away the pound’s recent gains following the appointment of new Finance Minister, Rishi Sunak. ….

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GBP

GBP paid little attention to data showing a rebound in the UK economy, as retail sales came in above expectations at 0.9%. Sterling has now lost 1.4% this week and lost the entirety of gains made last week. Sterling was also down against the euro and fell by 0.3% to it’s lowest level for one week.

Mounting expectations of fiscal stimulus had driven money markets to start pricing out Bank of England interest rate cuts this year, but expectations have crept higher in the past two days; they now show a roughly 80% chance of a 25 basis-point cut by December versus 69% early Wednesday.

Key Announcements

09:00 – EUR – Flash Manufacturing PMI – Forecast at 47.4 from previous 47.9.

09:00 – EUR – Flash Services PMI – Forecast at 52.4 from previous 52.5.

09:30 – GBP – Flash Manufacturing PMI – Forecast at 49.7 from previous 50.

09:30 – GBP – Flash Services PMI – Forecast at 53.4 from previous 53.9.

2:45 – USD – Flash Manufacturing PMI – Forecast at 51.5 from previous 51.9.

Source : ETFWorld.co.uk

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