Sterling Remains Subdued

Sterling remained under pressure yesterday following last week’s Bank of England meeting, which reduced expectations of a rate hike anytime soon after the Bank cut growth forecasts and attributed inflation gains to sterling depreciation.

Previous Day's Market Highlights

Sterling remained under pressure yesterday following last week’s Bank of England meeting, which reduced expectations of a rate hike anytime soon after the Bank cut growth forecasts and attributed inflation gains to sterling depreciation.
 
Sterling-euro inched to new lows since October, trading around some of its lowest levels since the flash crash and, prior to that, since 2011. Sterling-dollar fell towards 1.3000 but held above the key figure. Euro-dollar traded relatively sideways around 1.1800 after recovering the psychological level during the Asian session.
 
The South African rand jumped over 1% against the pound yesterday on the announcement of a motion of no-confidence in President Zuma, which will be held through secret ballot. 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1042 1.1438 1.1036 3.51%
GBP / USD 1.3034 1.3272 1.2812 3.47%
EUR / USD 1.1805 1.1912 1.1370 4.55%
GBP/AUD 1.6464 1.6984 1.6269 4.21%
GBP / NZD 1.7719 1.7994 1.7398 3.31%
GBP / CAD 1.6512 1.6727 1.6237 2.92%

Today's Market Highlights

The calendar is again quiet, which may see sterling remain relatively under pressure with little out to support it anew amidst reduced Bank rate hike expectations and uncertainty around Brexit negotiations.  
 
The afternoon’s US releases include JOLTS Job Openings (15:00 BST). Oil will remain in focus as OPEC and non-OPEC leaders meet for a second day to discuss compliance with production cuts.
 
Overnight, RBA Assistant Governor Kent speaks at The Bloomberg Address in Sydney (23:35 BST) and Australian Home Loans are forecast to have picked up in June (02:30 BST). Gains could offer the Aussie some support, while any discussions of the Aussie’s being too strong could weigh.
 
A vote of no-confidence in President Zuma during today’s secret ballot vote could strengthen the rand further.
 
Tomorrow, New Zealand announces its latest interest rate decision. The RBNZ is expected to keep rates on hold at 1.75%. 

Today's Economic Calendar

Time Currency Release Consensus Previous
24hr ALL OPEC Meeting
15:00 USD JOLTS Job Openings (Jun) 5.775M 5.666M
23:35 AUD RBA Assistant Governor Kent Speaks
02:30 AUD Home Loans (Jun) 1.5% 1.0%