The Pound Sterling slipped against the US Dollar during Monday’s trading session and headed back towards the recently struck 31-year low. Investors are waiting for a more dovish response from the Bank of England in the wake of the Brexit vote. The BoE will meet later this week, and many believe that the economic slowdown that is likely coming will result in the British central bank lowering interest rates from the current 0.5% for the first time in almost 90 months.
As reported at 10:59 am (BST) in London, the GBP/USD was trading at $1.2894, down 0.45%; the pair ranged from a session low of $1.2849 and a high of $1.2981. Meanwhile, the EUR/GBP was up 0.28% and trading at 0.8556 Pence; the pair’s ranged today was from a low of 0.8511 Pence to a high of 0.8580 Pence.
Economic Outlook Dire despite Brexit Vote
Despite the Brexit vote to leave the European Union, analysts say that the BoE seems to have had little choice in the matter giving a stagnating UK economy. The latest economic news shows a decline in consumer spending, while economic activity slowed and the business outlook took a dark turn. Last week’s survey on consumer morale showed a significant fall, according to records, the worst in 20 years. Taken together, the outlook for the Pound looks rather glum, says currency analysts,