GBP hammered by BoE, poor data
|It seems that nothing can stop the British pound from collapsing after BoE Governor Mark Carney expressed concerns about global growth on Tuesday and following a series of weak data releases. Meanwhile, Brexit risk is also weighing on the currency, as favorite Conservative party candidate Boris Johnson hard Brexit stance may reinforce the Scottish National Party position regarding an independence referendum of Scotland, a situation that tends to challenge the BoE's optimistic scenario and support a dovish U-turn.
GBP also faces the consequence of negative data as the release of June PMIs disappointed, starting with both manufacturing and construction, down 48 (prior:49.4) and 43.1 (prior: 48.6) and digging further into contraction territory while services PMI came at 50.2 (prior: 51), confirming stagnation in the UK strongest activity sector.
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Cable is now trading at its lowest range since mid-June 2019, ignoring negative US ISM and ADP data due to Independence Day and decisive job data released on Friday. We expect GBP to remain under pressure following publication of US figures.
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