USDGBP, Daily
Cable is registering just over a 1% loss on the day so far, which is the biggest mover out of the currency pairings we track. The decline mostly reflects across-the-board losses in sterling, which have pushed EURGBP into one-month territory and have come despite official data today showing a 2% y/y increase in foreign visitor spending in the UK in July. The sharp drop in pound in late June and early July following the Brexit vote has seemed to have boosted foreigners spending in the UK. The pound is down by an average of some 20% versus the G3 currencies on a year-on-year basis. Declining business investment in the face of protracted Brexit uncertainties suggests that sterling will remain biased lower into 2017, especially with the BoE having left the door wide open for further easing.
August low 1.2856, post Brexit low 1.2780 and 1.2500 all remain possible.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.