Trade wars hit the headlines once again

Daily Currency Update

GBP - British PoundDuring July Sterling managed to shave off 4% of its value and so far August seems to be following suit. Despite the summer parliamentary recess Boris and his team are still ramping up the preparations for a no deal Brexit. With a fresh injection of funding markets are becoming incredibly jittery to the prospect of crashing out and the drop in the Pound is testament to this. Friday saw the latest PMI release, Construction. UK construction sector output declined for the third month running in July, reflecting lower volumes of work across all three broad categories of activity. The latest reading was up from June's ten-year low of 43.1 but still signalled a marked downturn in total construction activity. Tim Moore, Economics Associate Director at IHS Markit, which compiles the survey was quoted: “UK construction output remains on a downward trajectory and another sharp drop in new orders has reduced the likelihood of a turnaround in the coming months. "Total business activity declined at a softer pace than the ten-year record seen in June, but this should not detract attention from the challenges ahead for the construction sector.Today we have last of the PMI’s and the one that usually draws the most attention. The Services sector has been forecast to show a slight improvement on the 50.2 reading seen last month. With GBP/EUR hovering at 12 month lows and cable not looking too healthy either its hard to see where the Pound will get its direction from and we expect, at least for the foreseeable, the quid will struggle to gain any momentum.