Pound Sterling Under Pressure Ahead Of BoE Decision; GBPINR Deepens Slide

Published on Aug 01, 2023 16:22

Pound Sterling is seen depressed against a firm dollar overseas and extending weakness through the European session. The dollar index that measures the greenback against a basket of currencies is hovering close to 102 mark, dampening major peers. Meanwhile, the pound stays cautious ahead of BoE rate decision due this week amid worsening economic conditions in the face of higher interest rates. Data today showed British factory output contracted in July at the fastest pace in seven months, hit by higher interest rates. The S&P Global/CIPS UK manufacturing Purchasing Managers` Index (PMI) fell to 45.3 in July from 46.5 in June, the lowest reading this year and the joint-weakest since May 2020. UK annual house price growth edged down to -3.8% in July, the weakest outturn since July 2009, although it is only modestly lower than the -3.5% recorded last month, Nationwide reported. On month, it was down 0.2%, after taking account of seasonal effects. GBPUSD gave up recent bids near $1.3 levels and is currently quoting near a three-week low of $1.2811, down 0.23% on the day. Economic concerns of rising inflation and deepening recession concerns is keeping the pound at bay. On the NSE, GBPINR futures contract is seen trading at 105.35, down 0.5% on the day.