GBP continues to fall after rate decision.

Over the weekend the GBP continued to fall against both the USD and EUR as markets digested a slate of PMI releases amongst the backdrop of the BoE interest rate decision.

GBP (British Pound): After the decision to hold interest rates last week the GBP continued to tumble over the weekend reaching just above a six month low of 1.22 on GBP/USD. The reasoning behind this is the poor overall outlook of the UK economy with servicing PMI coming in lower than expected and Manufacturing PMI languishing at 44.2 the GBP is no longer seen as a good investment by investors.

Looking ahead to this week the only major release for GBP comes Friday when the UK GDP figures for Q2 will be released.

EUR (Euro): The EUR saw a small reaction off of the PMI releases but with both manufacturing and servicing coming inline with expectation the movement against the USD was minimal. Today ECB president Lagarde will speak at 14:00 which should provide some clarity on the direction of the EUR.

USD (United States Dollar): The USD continued to strengthen over the weekend as the US had the strongest looking PMI figures on Friday. With both Services and Manufacturing PMI hovering around the 50 mark USD continued to be seen as a safe investment compared to the EUR and USD.

This week for the USD we have the release of consumer confidence on Tuesday followed by Q2 GDP figures released on Thursday.

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