Home pages - full list (A-Z)

Manufacturing Weakness Creates Further Uncertainty for Sterling

The British pound showed resilience on Tuesday in the face of data showing the fastest decline in UK manufacturing orders in three years. Pound uncertainty prevails, however, and a vote of no confidence in British P.M. Theresa May draws closer.

#News #GBP #USD
Email share     Facebook     LinkedIn    Twitter

New orders in the UK’s manufacturing sector fell by 6 percent in the three months to October, the Confederation of British Industry announced on Tuesday.

In its press release, the CBI, which collects data and opinions from 354 UK manufacturers, also expressed expectations among business managers for output growth to fall between now and the end of January 2019.

The pound showed resilience in the aftermath of the CBI report’s release, as it weakened only marginally, by 0.1 percent, to respective dollar and euro rates of $1.299 and €1.132.

Key quotes from the CBI include those made by the group’s chief economist Rain Newton-Smith, who described a “sobering set of figures” that demonstrate that UK investments are being “scaled back in the face of deepening Brexit uncertainty.”

“It is not surprising,” says CBI Manufacturing Council Chairman Tom Crotty, “that many firms have recently moved publicly from contingency planning to action as the likelihood of a ‘no deal’ Brexit increases.”

With speculation mounting that 1922 Committee Chairman Sir Ian Brady is nearly in receipt of the 48 letters needed to trigger a vote of no confidence in Prime Minister Theresa May, sterling will likely remain under a cloud for the time being.




Further Reading


AUD/GBP Between a Rock and a Hard Place – USD Strength


Both the Australian dollar and British pound sterling have had a hard time of late caught between the rock of the China/US trade war and the Brexit hard place.

Last update: 27 Aug, 2019

Australia Cuts Interest Rates to Record Low

RBA Australian dollar AUD currency news and forecasts

The RBA has cut Australian interest rates to a record low of 1 percent in an effort to boost inflation. The Australian dollar is slightly stronger following the widely expected decision but is expected to lose 5–7 percent of its value before year-end.

Last update: 14 Aug, 2019

GBP’s Bright Start to the Year Is a Distant Memory

The British pound was the worst-performing major currency in the April-June period and remains “impossible to forecast” amid a Tory leadership battle that might force “no deal” or a general election.

Last update: 30 Jun, 2019


Posted to: News

Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.

Get a Better FX Deal when you Send and Spend Abroad.


Do NOT follow this link or you will be banned from the site!