Sterling Falls Ahead Of BoE

The pound fell further yesterday as traders continued the sell orders.

We initially saw the pound start to drop as inflation came in under forecasts on Tuesday, sparking speculation that the Bank of England may decide as early as today to implement the next interest rate cut, which has been rumoured about and mentioned numerous times since they first cut rates last month.

Yesterday the selling carried on as unemployment figures for the UK came about unchanged, while average range missed the forecasts showing that wages have suffered since the vote to Brexit, whilst the claimant count (those claiming Jobseeker’s Allowance) has risen more than expected since last month showing more are looking for work without success.

The euro took over half a cent against the pound although this was reversed later in the day as US data on import and exports showed a drop, more than expected and the dollar slid against the pound taking the euro with it. The pound finished where it started against the single currency and over half a cent up against the greenback.

So onto today and the all important BoE interest rate meeting. We have the decision, the policy statement and the minutes to come at lunchtime so expect the pound to be jittery this morning ahead of the decision as traders speculate on whether there will be another rate cut or not, how the voting is split regardless of the decision and any key titbits from Mark Carney in the policy statement which might give indication as to the future course for monetary easing post Brexit.

In addition to that, we have UK retails sales this morning, the SNB Swiss interest rate decision, EU inflation and trade balance data, topped off with US retail sales this afternoon.

Much to go on and a really good chance the pound could take a beating today with influences from all over the globe ecostat wise so make sure you contact us early to secure your upcoming currency requirement this morning ahead of the data, or keep your comms lines open so we can update you as we go.