Forex News and analyses

The British pound reached a new historic low

06 october 2016

On Wednesday, the pound continued to sink reaching its lowest level at 1.2684 against the dollar, then the price pushed the pair GBP / USD still close with an increase in the level of 1.2747 dollars per pound. Data from the UK showed that the service sector grew faster than expected in September. The sector remains an area of ​​expansion as the cost of the meter is more than 50 points, which raise doubts about whether it needs another reduction in interest rates by the Bank of England.

EUR / USD is traded in a narrow range between 1.1204 levels and 1.1189, closing the day trading at a level of 1.1204 dollars for one euro or unchanged from the previous day. The US trade deficit expanded in August for the growth in imports, which also includes oil. The deficit expanded by 3% compared to the previous month to a seasonally adjusted 40.73 billion.

Once a day the greenback rose against the Japanese yen as the pair USD / JPY closed at 103.50 or a daily increase of 66 pips against yesterday's closing. The Governor of the Bank of Japan Haruhiko Kuroda said that he sees no immediate damage to local banks on the policy of negative interest rates, and interest rates will begin to rise when the central bank achieve the target inflation rate of 2%.

After strong sales on Tuesday, yesterday gold traded in a relatively small range between 1262.08 and 1275.98, closing the day at 1266.42 dollars per ounce.

Oil rose for a sixth day on Wednesday after the US Energy Information Administration reported that crude oil stocks in the US fell by 3 million. barrels last week, prices rose and US light crude rose more than 2% to 49.80 dollars a barrel, while Brent to 51.89 dollars per barrel.