Forex Weekly Round Up 4/7/16 – 8/7/16

The fallout from Brexit continues to have a detrimental effect on demand for the single currency, with nearly all EUR exchange rates registering losses on Monday. One of the major concerns being that the UK’s decision to exit the EU has provided many European populist parties with a louder voice than before.

Britain’s central bank announced plans to boost credit by up to £150 billion in a bid to control risks to the economy following the Brexit vote. Bank of England Governor Mark Carney said there was the “prospect of a material slowing of the economy” and that the measures would help major UK banks relax lending rules.

On Wednesday in the US the trade deficit rose to $41.1bn (£31.7bn) in May compared with $37.4bn in April. An increase of 10% from April to May while exports decreased by 0.2%, while imports grew by 1.6%. The US consistently runs a trade imbalance, importing more goods than it sells overseas, but as the dollar has continued to strengthen this has become more pronounced, as imports are cheaper and exports less competitive.

Here are the exchange rates taken at 15:35 today. Please note that all conversions are based on interbank rates without any spreads and should be used only as a guide. For live ‘spot’ and ‘forward’ prices please feel free to drop us a line.

GBP/USD 1.2940
GBP/EUR 1.1716
USD/EUR 0.9054