Pound Rebounds on Corporate Buying as Global Markets Fluctuate

The British Pound (GBP) has continued to decline against both the US Dollar (USD) and Euro (EUR), trading at 1.3290 against the USD and 1.1670 against the EUR on Wednesday.

According to Crédit Agricole, two competing forces are at work in the market: mild dollar demand indicated by its portfolio-rebalancing model and corporate clients' data suggesting businesses are buying both Sterling and the Euro.

The bank notes that global equity markets were 'somewhat mixed in July', while the USD delivered an uneven performance across major currencies. However, once equity moves are adjusted for market capitalisation, a more significant dollar demand emerges.