The pound gained ground again on Tuesday (6 September) as the momentum generated by upbeat economic data in the previous session, when the pound hit a seven-week high against the dollar, continued.
By mid-afternoon, sterling was up 0.39% against the dollar, exchanging hands at €1.3353 and gaining 0.20% against the euro to €1.1955.
On Monday, the pound hit the highest level in almost two months against the dollar after data showed Markit’s Purchasing Managers Index for the services sector rising from a four-year low of 47.4 in July to 52.9 in August, comfortably beating expectations for a 50 reading.
Coupled with positive reports on the health of the manufacturing and construction sectors released last week, the data look to have allayed fears of Britain entering a post-Brexit vote recession. However, data released on Tuesday was as upbeat as areport from the British Retail Consortium showed like-for-like sales fell 0.9% from the same period a year ago compared to a 1.1% increase in July.
Sterling could come under pressure on Wednesday, when Mark Carney, governor of the Bank of England, will speak in London.
“It will be a difficult task as he will have to answer to the Brexit supporters,” says Naeem Aslam, chief market analyst Think Markets UK.
“If he has done too much to weaken the British pound he will be on the firing line. The honest answer is that no one really knows what would have happened if he had been silent.”
Elsewhere, the dollar was on the back foot against both the euro and the yen, losing 0.05% against the former to 0.88 euro cents and 0.08% against the latter to ¥103.35.
“Unless the dollar strengthens, the outlook for growth weakens and/or underlying inflation is weaker than expected, the RBA is unlikely to feel the need to cut rates in November,” said analysts at Capital Economics.
“This doesn’t mean that rates won’t go lower. While we don’t expect underlying inflation to fall further, we don’t think it will rise towards the bottom of the 2-3% target range next year as the RBA expects.” – IBTimes
HARARE,– Reserve Bank of Zimbabwe (RBZ) on Tuesday conceded that the multi-currency systema dopted in 2009 was effectively dysfunctional with the economy trading solely on the United States dollar, which ...
HARARE (Reuters) - Some Zimbabwean banks are struggling to provide cash and are limiting amounts to individuals and companies, which the central bank blamed on the financial institutions underestimating demand ...
HARARE, – Financial institutions whose foreign currency accounts were raided by the central bank as it funded government operations at the height of the country’s hyperinflationary phase will be accorded ...
After amassing a huge fortune, hip hop star P Diddy is giving back. The 46-year-old star has set up the Sean Combs Scholarship Fund gifting $1m (£765k) to Howard University. Presenting the Washington institute’s president […]
UNITED NATIONS (Reuters) – Ghana’s President John Mahama told global leaders on Wednesday they should learn a thing or two from the King of Pop Michael Jackson and finally turn his song “Heal the World” […]
LOS ANGELES – The dramatization of O.J. Simpson’s sensational 1995 double murder trial looks set to sweep Sunday’s Emmy Awards, crowning an extraordinary year for American television and actors of multiple ethnic hues. As television enjoys […]