Forex

Sterling declines for seventh straight session to year lows

2018-08-10 19:06:20 GMT (Economies.com)

Sterling fell in American trade to June 26, 2017 lows versus the dollar, on track for the longest daily losing streak since late 2017, and the longest weekly losing streak since early 2017, following a basket of data from the UK and US earlier today. 

 

As of 02:51 GMT, GBP/USD shed 0.33% to 1.2782, with an intraday high at 1.2837, and a year low at 1.2723. 

 

Flood of UK Data 

 

Earlier UK data showed industrial output rose 0.4% m/m in June according to data released by the Office for National Statistics, the first such increase in three months, and compared to a 0.4% drop in May. 

 

Manufacturing production rose 0.4% m/m in June according to data released by the Office for National Statistics, similar to the May's reading and edging estimates of a 0.3% expansion. 

 

The UK goods trade balance marked a deficit of £11.4 billion in June, below estimates of £12.0 billion, however, the deficit widened by £4.7 billion in three months ending June to £8.6 billion due to falling goods exports while imports paced higher, according to data provided by the Office for National Statistics.

 

An index tracking the services sector rose 0.5% in the three months ending June, up from 0.4% in the previous reading. 

 

Most importantly, the UK economy grew by 0.4% q/q in the second quarter of 2018 according to data released by the Office for National Statistics, accelerating from 0.2% in the first quarter and matching analysts' expectations. 

 

The pound is facing increasing pressures as the chances of an unorganized Brexit increases as negotiations with the European Union fail to reach a middle ground. 

 

Upbeat US Inflation Data 

 

Earlier US data showed consumer prices rose 0.2% m/m in July as expected, accelerating from 0.1% in June, while core prices, excluding food and energy, rose 0.2% as expected with no change from June. 

 

On a yearly basis, consumer prices rose 2.9% as expected with no change as well, while core prices accelerated to 2.4% from 2.3%. 

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