GBP/USD Around 1.6550 as Complaints Surface of Reduced Earnings

The pound trading about 0.5 percent from a five-month low versus the dollar comes too late for U.K. companies with large foreign sales that are blaming sterling’s earlier rally for reduced earnings. Today it was WPP Plc’s turn.

The U.K. currency yesterday slid to the least since March after posting its seventh consecutive weekly loss. The decline pared gains amassed in the past 12 months that made sterling the best performer among 10 major currencies tracked by Bloomberg Correlation-Weighted Indexes. That’ll be of little comfort to WPP, the world’s largest advertising company, which said its first-half revenue had been damped by the pound’s broader rally.

This year “looks likely to be another demanding year, as a strong United Kingdom pound and weak faster-growth-market currencies continue to take their toll on our reported results,” London-based WPP said in a statement today.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.