Pound drops on worsening economic outlook.
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Daily Currency Update
Yesterday saw further pound weakness after the latest Purchasing Managers Index surveys were released. The survey for the dominant services sector came out at 51.9, way short of the 53.4 forecast, which led the pound to drop across the board. The reports contributor, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, commented: “September’s flash UK PMI survey brought a litany of worrying news including weakening growth, slumping overseas trade, worsening business confidence and further steep job losses." This worrying outlook saw GBP/USD drop to a low of around 1.3480 before recovering on the back of poor PMI numbers from the Eurozone and US being seen. GBP/USD is currently at 1.3490 with GBP/EUR around 1.1440.Key Movers
Donald Trump spoke at the UN yesterday where he gave a rambling speech berating countries, including the UK, that have recently recognised the State of Palestine. He also called climate change a myth and encouraged members to drill for oil. There also appeared to be a change of tack when it comes to Russia/Ukraine with Trump stating that Ukraine could win back all its territory. He also said that Nato members should shoot down Russian jets that enter its territory. Trump made the statements in a meeting with Ukraine President, Volodymyr Zelenskyy, on the sidelines of the UN General Assembly. There was little market reaction on the back of them given Trump is prone to changing his mind however indicates his patience with Vladmir Putin is waning further. EUR/USD trades around 1.1780.Expected Ranges
- GBP/USD: 1.3420 - 1.3600 ▼
- GBP/EUR: 1.1410 - 1.1510 ▼
- GBP/AUD: 2.0300 - 2.0480 ▼
- EUR/USD: 1.1725 - 1.1845 ▼