Pound Set For Record Weekly Drop Vs Euro
The pound is set for it's largest ever weekly fall against the euro after the BOE yesterday slashed interest rates to match their lowest levels ever.
The pound was at 86.35 pence against the euro at midday, trimming it's weekly loss to 4.75%, having posted a loss on the week of 5.5% at one point yesterday.
Against the dollar the pound was at $1.4685, posting a weekly loss of 4.6%.
The outlook for UK rates is still lower. The latest Reuters snap poll, following yesterday's BoE 100 bp rate cut, shows that a majority of survey respondents now look for the repo rate to bottom at 1.00% next year, from 1.25% in the previous survey. The market median is for a 50 bp rate cut next month, to 1.50%.
The dollar is steady ahead of this afternoon's US nonfarm payrolls numbers which are forecast to fall by aroun 300-350,000. That would mark the largest fall since a 431,000 decline in May 1980.
The pound was at 86.35 pence against the euro at midday, trimming it's weekly loss to 4.75%, having posted a loss on the week of 5.5% at one point yesterday.
Against the dollar the pound was at $1.4685, posting a weekly loss of 4.6%.
The outlook for UK rates is still lower. The latest Reuters snap poll, following yesterday's BoE 100 bp rate cut, shows that a majority of survey respondents now look for the repo rate to bottom at 1.00% next year, from 1.25% in the previous survey. The market median is for a 50 bp rate cut next month, to 1.50%.
The dollar is steady ahead of this afternoon's US nonfarm payrolls numbers which are forecast to fall by aroun 300-350,000. That would mark the largest fall since a 431,000 decline in May 1980.
