Forex Weekly Round Up 25/7/16 – 29/7/16

According to a quarterly business survey by the Confederation of British Industry, optimism about the UK economy among British businesses has fallen at the fastest rate since January 2009. More than half of businesses surveyed said that they were less optimistic about the general business situation than three months earlier.

The Bank of England is almost certain to cut benchmark borrowing costs when it sets policy on 4th August, but a slim majority of economists in a Reuter’s poll said it would hold off for now on restarting its asset purchase programme. All but three of the 49 economists surveyed since Friday expect the Bank to cut at least 25 basis points on 4th August from the already record low 0.5% it has sat at since early 2009.

Sterling edged down against the dollar and euro on Wednesday, refusing to be lifted by second-quarter UK growth data that was stronger than had been expected, though backward-looking. Britain’s economy grew by 0.6% during a second quarter that ended with a vote to leave the European Union, up from 0.4% in the first three months of 2016.

Here are the exchange rates taken at 13:50 on 29th July. 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’ rates please contact us.

GBP/USD 1.3204
GBP/EUR 1.1846
GBP/AED 4.8494
GBP/CNY 8.7760