Sterling Price Forecast: GBP/USD Challenging Big Figure Support
Sterling has dropped just over two percent against the euro and US dollar. Since April, it has fallen more than 6% to a seven-and-a-half month low, making it the pound’s second-worst quarter for ten years. Sterling jumped to a five-week high against the dollar and euro after MPs moved to block a no-deal Brexit and rejected the prime minister’s first call for a speed dial. Sterling witnessed the largest intraday decline against the dollar in its morning history after Britain left the EU in June last year.
The report is not very timely, published every quarter. The GDP report is not expected to be an exception and there could be more volatility for the dollar if there are big surprises in the numbers. US GDP in focus before Fed decision The second quarter progress GDP report will be the focus for the dollar, which could prove critical for the US currency as investors split on the likelihood of a cut 50-bps rate are by the Fed in the next meeting. The CBI survey on retail sales (Tuesday) and factory orders (Thursday) will be the only major releases and all eyes will instead be on the outcome of the conservative leadership election. Finally, since the report reflects data for a particular reporting month, any significant developments in the current account should have felt plausible this quarter and not during the release of data. Later during the early North American session, the US macro data ADP report on private employment and ISM non-manufacturing PMI could further impact USD price momentum and help create some meaningful trading opportunities.
Light Calendar in Asia Economic data will be scarce in Asia with only the production of PMIs with the potential of moving its market. Data released last week showed housing starts declined in June while building permits fell to a two-year low. The available data for the first quarter of 2019 suggests that the economic slowdown seen in the second half of 2018 carried over into the beginning of 2019.
The market has pulled back from examining the 2016 lows in earnings again, though lowering the medium-term trend rates remains intact. Futures markets say there is an almost 50% chance that the ECB will trim rates by 10 basis points next week, while a reduction in September is fully priced in. They are now betting heavily that an October cut will happen, which is making the Australian dollar exit unattractive today. The job market is bright and inflation is above the Bank of England target. A solid labor market and accommodative monetary policy will continue to drive growth, while consumers will also benefit from subdued inflation and lower-than-expected oil prices. Shrinking domestic demand was the culprit for the bleak shows. The foreign demand, on the other hand, was cheerful and helped face the quarrels at home.
Market fluctuations can certainly make a significant difference to the amount you receive when making a transfer, and it is practically impossible to predict exactly which way markets will go. Policy uncertainty, a less favorable tax regime, and higher interest rates are set to depress investment growth, while worsening employment dynamics and dampened productivity growth weigh on private consumption. The fall in price pressure for energy after the initial effects of higher oil prices faded drove the fall. The risk of a recession in the eurozone has increased. Bank beat receive exchange rates when making international money transfers with The Telegraph Moneycorp is a trade name of TTT Moneycorp Limited that is authorized by the Financial Conduct Authority under the Payment Service Regulations 2017 (reference number 308919) to provide payment services. Treasury yields remain above their short-term lows to keep valuations somewhat reasonable. Extremely low yields, a weak economic picture with downside risks, and support from the ECB keep the curve flat in a shorter end.