Further fall for the Pound

Last week the market finally saw some significant movements as the Bank of England cut interest rates on Thursday from 0.5% to 0.25% – a record low and the first cut since 2009. The Bank also increased their QE program which sent the pound 1.75% down against the Euro and 1.6% down against the Dollar.  <br>

On Friday the focus turned to the US as unemployment figures, and non-farm payrolls data was announced. July’s payroll figures excelled estimates as the economy added 255,000 positions. 75k over the 180k estimate. This data gave the Dollar over a cent boost against both the Pound and the Single currency. Now that the Dollar is looking more positive,  GBP-USD rates are likely to continue to fall as these positive figure has caused some speculation that the FED could introduce a rate hike sooner than expected.  <br>

All in all, not a great outlook for the pound as analysts predict GBP-USD rate could fall as low as 1.20 and GBP-EUR as low as 1.10  by the end of the year. So for those of you who have an upcoming requirement to buy currency it would be valuable to call in and speak to one of or friendly brokers to discuss the best options to secure your currency. Our forward contracts are a great tool to secure your currency ahead of time with just a 10% deposit and avoid any losses against a downward trending market.  <br>

The Week Ahead:  <br>

Monday <br>

USD       15:00     Labour Market Conditions Index (Jul) <br>

Tuesday v

GBP       09:30     Industrial Production (MoM) (YoY)June <br>

GBP       09:30     Manufacturing Production (MoM) (YoY)June <br>

GBP       09:30     Goods Trade Balance (Jun) <br>

CAD       13:45     Housing Starts s.a (YoY) (Jul) <br>

GBP       15:00     NIESR GDP Estimate  <br>

Wednesday  <br>

Overnight <br>

AUD       01:30     Westpac Consumer Confidence <br>

AUD       02:30     Investment Lending for Homes <br>

AUD       02:30     Home Loans <br>

AUD       04:05     RBA’s Governor Glenn Stevens Speech <br>

USD       18:00     10 Year Note Auction <br>

USD       19:00     Monthly Budget Statement <br>

NZD       22:00     RBNZ Interest Rate Decision, Monetary Policy Statement and Press Conference. <br>

Thursday <br>

USD       13:30     Initial Jobless Claims, Import and Export Price Index.  <br>

Overnight<br>

NZD       23:30     Business NZ PMI <br>

NZD       23:45     Retail Sales and Retail Sales ex Autos <br>

Friday <br>

EUR        10:00     Gross Domestic Product <br>

EUR        10:00     Industrial Production <br>

USD       13:30     Retail Sales and Retail Sales ex Autos <br>