By: DailyForex.com
The Pound Sterling was trading close to a 3-week peak versus the US Dollar, and edged higher versus the common currency euro. Analysts feel any rally for the Pound would be short lived, given expectations of the Bank of England lowering interest rates. At present, the current consensus is for an interest rate cut of 25 basis points to 0.25%. The Bank of England is making an effort to keep the UK economy shored up in the wake of the June 23rd Brexit vote to leave the European Union. Not all analysts concur with the need for more easing; some have argued that it remains to be seen what long-term impact the Brexit will have on the economy.
As reported at 11:16 am (BST) in London, the GBP/USD was trading at 1.3296, down 0.18%; the pair had ranged from a session low of $1.3277 to a peak of $1.3344. The EUR/GBP was flat at 0.8357 Pence; the pair ranged from 0.836 Pence to 0.838 Pence, in today’s trading.
US Labor Data Looms
Markets will now be waiting for the release later today of some US unemployment reports which speak to the all-important labor sector. The data, coupled with tomorrow’s release of Non-farms Payroll figures for July, will help FX investors assess the sentiment of the US Federal Reserve Bank and could provide some insight into timing of the next rate hike. After last month’s blowout figures for the NFP, analysts are expecting a more moderate 180K new jobs in July. Any disappointment will weigh on the greenback while upbeat numbers could change the perspective on timing.