Quiet start to the week for the foreign exchange market, to some extent due to the holiday in the US, where the markets are closed, but also because of the lack of impactful news; at least so far. The one exception to this rule, within the G10 currencies sphere, is the Pound, which is continuing its downward trend; down by almost 0.8% to the US dollar since market opening on Friday.
The weakness of Sterling is a result of a steady stream of headwinds, which included poor GDP numbers, dovish comments from members of the Monetary Policy Committee of the Bank of England and culminated on Friday with the publication of retail figures that were markedly below expectations. The pound is showing weakness because the UK’s economy is slowing down and a rate cut by the BoE is increasingly likely.
Photo by Nick Pampoukidis.
