Pound Drops, Manages to Recover Against Some Rivals

The Great Britain pound fell against its major rivals today, though currently the sterling managed to erase losses against some of them. The possible reasons for the decline were the strength of the US dollar and the dovish Financial Stability Report.

The Nationwide House Price Index rose 0.5% in June. While it seemed a decent enough reading, especially compared to the predicted increase by just 0.3% and the drop by 0.2% logged in May, experts pointed out that the annual rate of growth in June was the slowest since 2013.

The Distributive Trade Survey for June released by the Confederation of British Industry showed that 32% of respondents expected an increase of retail sales. That was a better figure than 10% predicted by analysts and 11% registered in the previous month.

Markets participants started to doubt that the Bank of England is going to raise interest rates this year. Such doubts were a result of comments in the Financial Stability Report, which mentioned that “risks from global vulnerabilities remain material and have increased” as well as possibility of disorderly Brexit.

GBP/USD dropped from 1.3227 to 1.3120 as of 18:45 GMT today. GBP/JPY fell from 145.48 to 144.74. EUR/GBP was up from 0.8802 to 0.8828 but retreated to 0.8799 by now.

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