Pound falls against dollar after robust US durable goods data

Robust U.S. economic data lifted the dollar on Wednesday, lessening the demand for safe-haven currencies. One such currency was the British pound, which suffered heavy losses.

The dollar was lifted by durable goods orders data, with the previous revisions also helping. Data showed U.S. non-defence capital goods orders excluding aircraft increase 2.2 percent in July, the biggest rise since June last year and beating expectations.

Sterling slid 0.8 percent against the dollar to $1.5562, its lowest level since August 12, with investors increasingly unsure about the timing of expected increases in British interest rates amid stock market turmoil.
Sterling was 0.4 percent higher against the euro at 73.06 pence per euro, having hit a three-month low of 74.21 on Monday when it lost more than 2 percent, its biggest fall since 2009.

Money markets have pushed out the timing for a Bank of England (BoE) to raise rates to around the third quarter of next year compared with early 2016 when the central bank published its quarterly inflation report three weeks ago. Recent UK economic data, though, has sent mixed signals. The housing market and rebound in core inflation look strong enough to warrant higher interest rates, analysts say, but retail sales figures were well short of expectations.

The post Pound falls against dollar after robust US durable goods data appeared first on Forex Circles.

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