Wednesday, 15 July, 2020, 7:03 PM
latest 33 more virus deaths, 3,533 fresh cases reported in Bangladesh      
Home Business

Sterling edges lower as weak data, Brexit worries keep pressure on

Published : Tuesday, 16 July, 2019 at 12:00 AM  Count : 231

LONDON, July 15: The British pound fell back towards six month lows against the dollar and the euro on Monday, with sterling traders still nervous about a loss of momentum in the UK economy, the prospect of an interest rate cut and a new prime minister. Sterling recovered slightly at the end of last week, ending a nine week losing streak against the euro and inching away from the low of $1.2439 hit at the end of June.
However, analysts are largely bearish on the currency after a run of poor economic data and signals from the Bank of England that its next move may be to cut interest rates rather than hike them, as it had previously flagged.
On Tuesday, employment and wage growth data for the month of May will show how the British labour market is holding up. Many economists expect the UK economy will have contracted in the second quarter.
Investors are also waiting for the outcome of the Conservative party leadership contest to replace Prime Minister Theresa May. Eurosceptic Boris Johnson is the favourite to win against Jeremy Hunt in a vote of Conservative party members. The winner will be crowned leader - and prime minister - by the end of July.
Nomura FX strategist Jordan Rochester said the bank's analysts had concluded that sterling was "in the value zone for now, vols are cheap and a lot of bad news is priced in but that's just for the next six weeks or so.    -Reuters

« PreviousNext »

Latest News
Most Read News
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000. Phone: PABX 9586651-58; Online: 9513959 & 01552319639; Advertisement: 9513663
E-mail: [email protected], [email protected], [email protected], [email protected],   [ABOUT US]     [CONTACT US]   [AD RATE]   Developed & Maintenance by i2soft