The ailing pound may need a dose of positive UK data to help it recover from a losing run against the dollar.
Traders will watch data due this week in the hope that evidence of a strong economy will help boost the currency. Sterling dropped below $1.30 for the first time in seven weeks Friday as investors looked past the Bank of England’s interest-rate increase and focused on governor Mark Carney’s comment that a chance of a no-deal Brexit was “uncomfortably high.”
The pound hovered close to $1.30 in London Friday after falling to $1.297, the lowest since July 19. It posted its fourth straight weekly decline against the dollar, its longest losing streak since January 2015.
The slide came even as Citigroup’s Economic Surprise Index, which measures whether economic data have exceeded or fallen short of analysts’ estimates, climbed last week to the highest level since February.
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Read more:
UK central bank: no-deal Brexit risk 'uncomfortably high'
Mixed fortunes for sterling as Brexit negotiations rumble on
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“Positive U.K. data surprises could - if they were strong enough - jolt sterling markets out of their current Brexit lull,” said Viraj Patel, a currency strategist at ING Groep. Economists at the bank predict a GDP reading of 0.5 per cent which, if materialises, could offer sterling “a bit of support,” Mr Patel said.
Investors turn their focus to gross domestic product, industrial production and trade data due Friday. The UK economy grew 0.4 per cent in the second quarter, according to the median forecast in a Bloomberg survey. Still, developments surrounding Brexit and possible escalation in the trade war between the US and China could hamper any sterling gains.
“We do feel the balance of risks is for further political turbulence between now and October,” said Mr Patel, who forecasts that the pound will drop to $1.27 to $1.28 in the third quarter.
The pound has been oversold against the dollar “for a couple of months now - but for good reason,” according to Mr Patel. “Both Brexit and trade-war uncertainties are weighing on sentiment - and we’ll need one or other of these risks to subside to change those dynamics.”
PREMIER LEAGUE TABLE
1 Man City 26 20 3 3 63 17 63
2 Liverpool 25 17 6 2 64 20 57
3 Chelsea 25 14 8 3 49 18 50
4 Man Utd 26 13 7 6 44 34 46
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5 West Ham 26 12 6 8 45 34 42
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6 Arsenal 23 13 3 7 36 26 42
7 Wolves 24 12 4 8 23 18 40
8 Tottenham 23 12 4 8 31 31 39
What is 'Soft Power'?
Soft power was first mentioned in 1990 by former US Defence Secretary Joseph Nye.
He believed that there were alternative ways of cultivating support from other countries, instead of achieving goals using military strength.
Soft power is, at its root, the ability to convince other states to do what you want without force.
This is traditionally achieved by proving that you share morals and values.
Killing of Qassem Suleimani
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
