Pound falls for 7ths straight day

Pound to Euro is on its longest losing streak since January – 7 straight days of decline, while sterling/dollar is firmly on track for its steepest monthly decline this year. It’s fallen more than 3 percent so far in August. Pound rates have not fared well this week. At the time of writing rates are as follows:

  • GBP/EUR 1.1354
  • GBP/USD 1.6274
  • GBP/AUD 1.9360
  • GBP/NZD 2.3737
  • GBP/CAD 1.7702
  • GBP/CHF 1.7265
  • GBP/ZAR 12.672
  • GBP/JPY 152.63

Sterlings Decline

Sterling hit a 2 1/2-month low against the euro on Thursday after data showed UK business investment fell by the most in almost a quarter of a century, reinforcing expectations interest rates will stay low for some time.

These reports offset surprisingly strong UK house price data and kept the idea of low Bank of England and market-based interest rates, which diminish the relative appeal of sterling-denominated assets, at the forefront of traders’ minds.

As outlined in yesterdays report, it’s this prediction of continued low rates in the UK, while EU and US rates may climb is what’s keeping Sterling under pressure. This is unlikely to change in the near term.

We have had GDP data for the UK this morning, the monthly figures were better than expected, however the annual figures were as predicted. The only hope today for a climb in rates is a Friday afternoon run. When currency investors and speculators wind up their positions for the weekend, the result can often benefit key currencies such as the pound, although this is a long shot!

Signs of US Growth

US durable goods orders and new home sales both soared last month, the latest positive indications of the state of the world’s largest economy. Orders for goods expected to last more than three years increased 4.9% in July, beating analyst expectations of a 3% gain, said the Commerce Department.

Durable goods orders were lifted by the popularity of the government’s car scrappage scheme. This helped US car orders rise 0.9%, recovering from June and May falls. At the same time, the annual rate of sales of new US homes rose 9.6% last month, also ahead of market targets.

This has strengthened the US Dollar, and helped to push rates lower.


The pound is under severe pressure and the outlook is not good. Contact us today to discuss the implications of this weakness on your currency requirement. We can get you commercial rates that are up to 5% better than rates offered by the high street banks.

Consider the risk, and then open an account. Remember it’s free to have a trading account, it doesnt obligate you, and simply means that you can obtain live quotes and see how much you can save.

Todays Data
UK – Gross Domestic Product
UK – Index of Services
EU – Consumer Confidence
EU – Economic Confidence
EU – Industrial Confidence
US – Core Personal Consumption
US – Personal Income
US – Consumer Sentiment
Can – Industrial Product Price

When you get in touch, ensure you mention you heard about foremost currency group through our Blog. Simply quote ‘Blog’

Open a free Trading Facility

Open an online Trading Account

Email Me

Foremost Currency Group

Leave a Reply

Your email address will not be published. Required fields are marked *