Cable has continued its decline going into the new week, after the pair fell for a second consecutive day on Friday. The Pound has suffered since the outcome of the Bank of England’s monetary policy decision last week. Although the report was mostly dovish, with the bank noting that “developments in global GDP growth have been somewhat stronger than anticipated”, Sterling declined on the day. Data from Britain has also failed to impress. June’s GFK Consumer Confidence Survey printed at -9, worse than the -7 expected.
Little inspired Cable on Friday as the pair started the day at 1.3928 and closed below that mark at 1.3915. Today the GBPUSD rate has fallen even further, testing the 1.3900 barrier.
GBPEUR also caught some downside on Friday, shedding over 20 pips by the close. The pair opened the session at 1.1665 and closed at 1.1643.
EURUSD in contrast was able to make subtle gains on Friday – opening at 1.1940 and closing at 1.1950.
On the data front, it is an extremely quiet day with no releases major releases scheduled. At 13:00 BoE’s Haldane will be speaking; followed by the Fed’s Williams at 14:00. From the ECB at 15:00 Guindos will be speaking. Then to close the day at 18:10 Fed member Quarles will be giving a speech.
