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July in the Markets

Global uncertainty has significantly affected the markets in July, with the US/China trade war still in play, Brexit ongoing, tensions with North Korea and trouble in the Gulf, it’s been a bumpy ride.

Bank of England Reports Published in July 2019

Bank Liabilities Survey – 2019 Q2 – Read the report

This report presents the results of the 2019 Q2 survey on lenders’ own thoughts about the cost of capital, capital levels and funding volumes.

Systemic Risk Survey Results – 2019 H1 – Read the report

This report presents the results of the 2019 first half survey on confidence in the stability of the UK financial system and the sources of risk to affect it.

Financial Stability Report and Record – July 2019 – Read the report

This report sets out the bank’s Financial Policy Committee’s view on the stability of the UK financial system and what it is doing to remove or reduce any risks to it.

Pound Falls Lower on No-Deal Brexit Prospect

From: The BBC

The pound has continued to fall on currency markets as the government insists that the UK is prepared to leave the EU without a deal.

Sterling hit a fresh two-year low of $1.2120 against the dollar on Tuesday, before recovering some ground. The currency also slid against the euro, falling to €1.0881 at one point.

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Stock Markets Brace for FOMC Rate Decision

From: Daily FX

Investors will be listening to the FOMC rate decision and commentary from Fed Chairman Jerome Powell.

An overwhelmingly majority are anticipating a 25 basis-point rate cut and are likely hoping for the subsequent remarks to contain dovish undertones. However, even with a rate cut, the US Dollar may actually gain at the expense of equity markets.

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UK Public Sector Borrowing Spiked In June

From: Daily Forex

The finances of the UK took a hit in June when public sector borrowing spiked to its highest level since June 2015. The June 2019 figure came in at £7.2 billion, more than double the £3.3 billion borrowing for June 2018.

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Analysts Cut Copper Forecasts on Worries About Chinese Demand

From: Reuters

The London Metal Exchange index of six base metals has shed 7% since its late February peak, weighed down by a downturn in China, U.S.-China trade tensions and worries about the global economy.

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Sterling Steadies After 4 Days of Falls, PM Johnson in Northern Ireland

From: Reuters

Sterling steadied on Wednesday after four days of steep losses, rising 0.2% against the dollar, though it was on track for its biggest monthly fall since November 2016 as investors price in the increased risk of a no-deal Brexit.

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FX Rates in July

GBP/EUR

Juky GBP vs EUR Currency Fluctuations

Jul High: 1.1203
Jul Low: 1.0870
Jul End: 1.0907

GBP/USD

July GBP vs USD Currency Fluctuations

Jul High: 1.2679
Jul Low: 1.1141
Jul End: 1.2161

EUR/USD

July EUR vs USD Currency Fluctuations

Jul High: 1.1329
Jul Low: 1.0904
Jul End: 1.1144