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Selloff: Pound sterling sharply lower vs Euro, US dollar, Australian and New Zealand dollars

The Office for National Statistics has today released a great deal of data, unfortunately for those hoping for a bounce higher in the British pound, the data came in off-target.

A look at the latest currency exchange rates shows just how disappointed markets are:

  • The pound euro exchange rate is 0.3 pct lower on a day-to-day basis at 1.1815.
  • The pound dollar exchange rate is 0.68 pct lower at 1.5974.
  • The pound Australian dollar exchange rate is 0.9 pct lower at 1.6916.
  • The pound New Zealand dollar rate is 0.76 pct lower at 1.9256.
  • The pound South African Rand exchange rate is 0.65 pct down at 1.59850.

NB: The above quotes are wholesale market quotes, your bank will affix a discretionary spread when making a retail offer. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please learn more here.

Today's ONS data

ons data disapointsIt has been a slow week for the British pound thus far with currency direction determined by foreign factors as well as the technical positioning by traders.

Wednesday sees the focus return to the UK economy. The data missed expectations and promptly saw the sell buttons being hit.

Manufacturing Production (YoY) (Aug) misses the target: Actual -0.2%, consensus forecasts 1%. But better than last month which read at -0.3%.

Goods Trade Balance (Aug) also misses expectations: Actual £-9.625B, £-9.000B forecasted. Better than last month at £-9.941B.

Total Trade Balance (Aug): Actual £-3.320B, consensus forecasts for £-2.050B. Previous at £-3.449B.

Manufacturing Production (MoM) (Aug): Actual -1.2%, expectations were for 0.4%. Last month 0.2%.

Industrial Production (YoY) (Aug): Actual -1.5%, -0.6% Consensus, previous -1.1% (Previous Revised from -1.600).

A look at the below graph shows the reaction of the GBP/USD rate.

pound sterling falls on ons data

We are expecting the pound to enter a period of consolidation / trend lower.

The Bank of England is due to release their interest rate decision tomorrow. No changes are expected. However, the only hope for those hoping for stronger sterling exchange rates would be the release of some hawkish guidance by the Monetary Policy Committee.

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