Sterling plumbs eight-month trough versus dollar

Sterling fell in American trade to November 3 lows versus the dollar, following earlier data from the US and amid a lack thereof from Britain, while Federal Reserve Bank of Atlanta President Raphael Bostic spoke today in Atlanta. 

As of 04:44 GMT, GBP/USD inched down 0.19% to 1.3088 from the opening of 1.3113, with an intraday high at 1.3121, and an eight-month nadir at 1.3050. 

Bank of England Chief Economic Andy Haldane spoke today about productivity growth at the Academy of Social Sciences Annual Lecture, in London, where he pointed to some weakness in the UK economy, while expecting growth to average 1.5%. 

Haldane cited productivity as the biggest challenge facing the UK economy, while noting that labor market keeps improving and inflationary pressures are buoying wages, adding the BoE will need to have some degree of monetary stimuli in the market even with rate hikes. 

UK Financial Stability 

Bank of England's financial stability report expressed concerns that Brexit still presents risks to local stability, but other than that, risks remain balanced, with corporate debt in Britain still much below 2008 levels. 

The report indicated that UK banking system would support the economy in case of an organize Brexit, while pointing to increased global risks from trade tensions and US monetary tightening. 

Carney's speech warned from increasing global trade tensions that could lead to interest rate cuts in the long term, asserting that protectionists calls could impact global growth negatively. 

Carney noted that consumer spending and UK debt levels remain low, while capital in banks rose, paving the way for some stability even in the case of an unorganized Brexit. 

Disappointing US Data 

Earlier US data showed the final reading for first-quarter GDP growth down to 2.0% from 2.2% in the second reading and 2.9% in the fourth quarter of 2017, while GDP prices accelerated to 2.2% from 1.9% in the second reading and 2.3% in the fourth quarter of 2017. 

US unemployment claims rose 9 thousand to 227 thousand from 218 thousand, above forecasts of 220K, while continuing claims for the week ending June 16 fell 21 thousand to 1.705 million from 1.7426 million, below forecasts of 1.718 million.