GBP/USD: testing below 1.3000 - Scotiabank

Analysts at Scotiabank explained that BoE MPC member McCafferty’s dovish comments pushed Cable below 1.30 in early Asian trade and poor trade data helped sustain downside pressure on the pound through London dealing.

Key Quotes:

:McCafferty’s remarks, suggesting that more easing was likely if the UK economy slowed in line with initial post-Brexit survey signals, did not provide any more insight beyond the policy outlook framed by Governor Carney last week, however.

UK data reports reflected in line with expectations industrial production at +0.1% for June (but weaker-than-forecast manufacturing at -0.3%). The trade deficit was an uncomfortable blow out at –GBP12.4bn."