The pound weakened to a seven-month low against the dollar after Bank of England policy maker Martin Weale endorsed the currency’s decline, saying it may help bolster exports.
Sterling dropped for the first time in three days versus the euro amid speculation central bank minutes to be released this week may echo those from January, which said sterling’s real exchange rate was above the level needed to help the economy rebalance. Futures traders scrapped bets the pound would strengthen, data from the Washington-based Commodity Futures Trading Commission showed. Gilts were little changed.
“Investors are struggling to have faith in sterling,” said Simon Smith, chief economist at FxPro Group Ltd. in London. “Investors are seeing an economy which is possibly entering another recession and is likely to see inflation holding above target. The central bank is also wanting to see the currency lower. Weale’s comments were a fresh piece of evidence.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015