Forex: GBP/USD – Sterling continues to soften

on Jul 2, 2013

The pair has been in decline today, touching a low so far at 1.5156, a level last seen at the end of May.

Earlier in the day, the UK Debt Management Office held an auction for £3.5 billion ($5.32 billion) worth of 10-year gilts. The benchmark 10-year yield was little changed at 2.41 percent, with the price for the 1.75 percent security maturing in September 2022 being £94.63.

Mark Carney yesterday began his term as governor of the Bank of England and will lead his first meeting of the Monetary Policy Committee on Thursday this week. Following good economic results in June, economists anticipate that the BoE will keep QE at £375 billion ($571 billion). The MPC is expected to issue a statement after the meeting, something it normally doesn’t do.

In the US, May factory orders will be released at 15:00 BST.
Earlier, at 13.30 BST, New York Fed President William C. Dudley is scheduled to speak on regional and national economic conditions at a business luncheon in Stamford, Connecticut. Fed Governor Jerome Powell will later speak on reforming international financial regulations at a Deutsche Bundesbank function in New York.