Sterling Looks For Momentum But Comes Up Short

GBP

The pound retreated back towards six-month lows on Monday as nervousness around Brexit, the loss of momentum in the UK economy, the prospect of an interest rate cut and the wait for the new Prime Minister to be announced continued to weigh on the currency.

Traders continue to drag the pound down as we have seen signs that the economy is starting to struggle under the stress of a unclear Brexit outcome. We have seen a recent run of poor economic data and signals from Bank of England members that a cut to interest rates could be around the corner. Previously, the UK economy had been resilient to Brexit pressures, but this no longer appears to be the case.

Key Announcements

09:30 – GBP: Average Earnings Excluding Bonus (May); expected to increase to 3.5% from 3.4%
10:00 – EUR: German ZEW Survey (July); expected to increase to -20.0 from -21.1
13:00 – GBP: BOE Governor Carney Speech
13:30 – USD: Retail Sales (Jun); expected to fall to 0.3% from 0.4%
18:00 – USD: Fed Chair Powell Speech