Pound headed for record 10th week of losses

Credit: Reuters Studio
Published on July 12, 2019 - Duration: 01:23s

Pound headed for record 10th week of losses

The pound edged higher on Friday but was set for a record 10th week of consecutive losses against the euro as weak data and the growing possibility of interest rate cuts after a chaotic Brexit kept investors sidelined.

Pascale Davies reports.


Pound headed for record 10th week of losses

The pound continues its losing streak.

On Friday it was set for a record 10th straight week of losses against the euro.

That as an interest rate cut appears more likely.

A Bank of England rate rise was one of the few hopes that had supported sterling in recent weeks.

But those hopes have seemingly been dashed Senior Bank of England official Gertjan Vlieghe said at a Thomson Reuters event on Friday the central bank might need to cut rates almost to zero in the event of a no-deal Brexit.

But he said, if the UK leaves with a deal- the BoE could increase rates to 1% in one year.

The prospects of a crash out of the bloc have increased in recent weeks.

That as the favorite to be the next prime minister, Boris Johnson, says the country will depart on October 31st, with or without a deal.

Concerns over slow growth have also hit the pound.

On Friday it was flat against the euro at 89.81 pence.

Against the dollar, sterling was 0.1% higher at $1.25 on Friday.

But some analysts see a turnaround.

They say the declines are overdone, and sterling is due for a rebound.

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