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August in the Markets.

Bank of England Reports Published in August 2020

Monetary Policy Report and Financial Stability Report – August 2020Read the report

The Bank of England has published their quarterly Monetary Policy Report alongside their Financial Stability Report.

Bank Rate Maintained at 0.1% – August 2020Read the report

Monetary Policy Summary and minutes of the Monetary Policy Committee meeting.

Financial Policy Summary and Record – August 2020 Read the report

The Financial Policy Committee (FPC) meets to identify risks to financial stability and agree policy actions aimed at safeguarding the resilience of the UK financial system.

House Prices At All-Time High, Says Nationwide

From: The BBC

House prices continued their post-lockdown recovery in August, notching up their highest monthly rise in more than 16 years, says Nationwide.

However, forecasters expect a drop in prices again when the economic impact of the virus is felt on jobs.

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Pound Rises To 8-Month High

From: Daily FX

The Pound Sterling struck a fresh 8-month peak versus its rival across the pond, largely a factor of a much weaker US Dollar.

The new policy framework from the US Federal Reserve Bank suggests that the current low-interest rate environment is likely to endure far longer than analysts had anticipated.

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China’s Business Sector Expands in August

From: Daily Forex

China’s Federation of Logistics and Purchasing recently released the country’s Purchasing Managers Index (PMI) which showed an expansion on the business sector, surpassing the analysts’ expectations who foresaw it to slow down.

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Euro Retreats After Breaking Through $1.20, Dollar Ticks Up

From: Reuters

After earlier breaking through the $1.20 mark for the first time since 2018, the euro dipped on Tuesday afternoon as investors took profits, driving the dollar up from a 28-month low.

The shift in policy has encouraged traders to sell the dollar, betting U.S. interest rates would stay low for longer. The chief beneficiary of the sell-off has been the euro, which on Tuesday morning rose to $1.2011 EUR=, its highest since May 2018.

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UK Economy Might Take Years to Recover From COVID Hit – BoE’s Vlieghe

From: Reuters

Bank of England interest-rate setter Gertjan Vlieghe said there was a material risk that it could take several years for Britain’s economy to return to full capacity after its coronavirus shock.

Vlieghe said in an annual report to lawmakers that some sectors might not be able to return to their pre-pandemic size, leading to a reorientation of the economy.

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FX Rates in August

GBP/EUR

Aug High: 1.1173
Aug Low: 1.1045
Aug End: 1.1173

GBP/USD

Aug High: 1.3277
Aug Low: 1.3042
Aug End: 1.3266

EUR/USD

Aug High: 1.1926
Aug Low: 1.1721
Aug End: 1.1869