The pound fell for a fifth day as it dipped to fresh lows yesterday amid a gloomy outlook over the UK economy post Brexit. The current weak confidence in the UK economy has been made worse by Governor of the Bank of England (BOE) Mark Carney last week announcing more than expected quantitative easing and cutting interest rates for the first time in 7 years. Furthermore, BOE member Mc Cafferty has signalled that gradually further measures will be necessary if conditions worsen.
Brexit, the UK’s loosening of monetary policy, downgraded growth figures forecast for 2017 and 2018 and McCafferty’s comments have all weighed heavily on the pound recently. With the US in a stronger position to move interest rates upwards this year, the stage is set for divergent monetary policies between the UK and the US.
15:30 – USD: Crude Oil Inventories