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Posted March 14th, 2016 by Charles Purdy

Will sterling budge for the Budget on Wednesday?

A late surge for sterling saw the currency recover some lost ground against the euro on Friday, and finish the week at a fresh one-month high against the US dollar. Sterling investors can pause to draw breath at the start to the week, with no major economic data set to be released from the UK until Wednesday.

Labour data is set to be released on Wednesday and, with unemployment remaining steady at an eight-year low of 5.1%, it is average earnings data that will provide the main focus. Later in the day, investors will turn their attention to Chancellor George Osborne, who will announce the Government’s annual budget, and possible offer some further insight into the Government’s views on Brexit.

There will be no rest on Thursday, with the release of the Bank of England (BoE)’s latest interest rate decision, and the minutes from this meeting. This will reveal both the voting pattern of monetary policy committee members, and their thoughts on the direction that future monetary policy should be taking. As such, we could see significant sterling movement in the wake of this release.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

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Posted March 11th, 2016 by Charles Purdy

Trade balance data due from UK

A mixed week for sterling saw limited movement for the currency in the first part of the week, before it experienced significant swings against both the euro and US dollar on Thursday following the European Central Bank (ECB)’s interest rate decision.

A brief dip was seen on Tuesday following comments from Bank of England (BoE) Governor Carney regarding our European Union membership referendum, but effects throughout the market were muted. Wednesday saw the release of manufacturing production figures from the UK which revealed an increase of 0.7% throughout the industry in February.

Thursday brought the most significant movement for sterling though, initially strengthening against the euro whilst moving in the opposite direction versus the US dollar as the ECB cut its deposit interest rate to -0.4%. However, these trends were soon reversed, with sterling hitting a fresh three-week high against the US dollar as European Central Bank President Draghi talked down the prospect of further interest rate cuts.

A quiet day for economic data releases today as markets digest the events of yesterday. However, trade balance data from the UK will provide some interest, with a further slip into negative ground expected.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted March 10th, 2016 by Charles Purdy

Unpredictable day for sterling

An unpredictable day for sterling in the currency markets yesterday saw large swings throughout the day against both the euro and US dollar but in the end the exchange rate was very close to where it started. Industrial output was shown to have increased by 0.3% throughout the previous month, providing the basis for sterling strength throughout the morning. Consequently, the currency rose close to a one-month high against the euro before retracting sharply throughout the afternoon. With debate over the upcoming EU referendum still ongoing, sterling markets are likely to remain volatile throughout the coming months.

No major economic data is set to be released from the UK today, although markets will be keeping a very close eye on developments on the continent, where the European Central Bank (ECB) will be announcing its latest stimulus package for the Eurozone.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted March 9th, 2016 by Charles Purdy

Sterling suffers tough day as Carney takes the stand

Yesterday was a tough day for sterling overall, as it retreated from Monday’s two-week high against the US dollar, and lost ground against the majority of its trading partners as Bank of England (BoE) Governor Mark Carney spoke to parliament. Sterling fell across the board as Mr Carney warned of the risks to UK growth should the nation vote to leave the European Union (EU) in June. Describing the possibility as the ‘biggest domestic risk to financial stability’ Carney assured members of Parliament that the BoE would make extra liquidity available to banks in the run-up to the referendum.

Despite this, sterling found support throughout the afternoon with many investors viewing a British exit from the EU as an unlikely scenario. Carney also maintained during his testimony that the BoE will not take sides, but will work to ensure financial stability, whatever the result of the Referendum vote.

Today sees the release of manufacturing production figures from the UK, which are forecast to show an increase of 0.2% throughout February. Following 3 months of contraction within the industry, this could provide sterling with welcome support.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted March 8th, 2016 by Charles Purdy

Carney’s briefing to Parliament takes centre stage

Despite a tough morning, sterling finished Monday in a positive fashion, making very slight gains across the board ahead of Bank of England (BoE) Governor Mark Carney’s briefing to Parliament today. There was no significant economic data released on Monday, and markets remained flat throughout the day, as investors seemingly held their breath ahead of more influential releases later in the week. Sterling did rally late in the day, however, to hit a fresh two-and-a-half week high against the US dollar.

Today we will see BoE Governor Carney testify before the parliamentary committee on the central bank’s thoughts regarding the upcoming EU referendum, and what contingency plans are in place should the nation vote to leave. With monetary policy likely to react significantly to the result of the referendum, investors will be listening keenly to Carney’s words.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted March 7th, 2016 by Charles Purdy

Sterling looking to Europe

A mixed end to the week for sterling, with further positive movement against the US dollar on the back of disappointing US earnings data offset by a second straight day of moving sideways versus the euro. This completed a week of gains for sterling against the US dollar. Sterling also ended the week significantly higher versus the euro.

Following a data-heavy week for sterling, we are not set for any significant UK economic data releases until Wednesday. Manufacturing production figures for February will be the main point of interest, where a rebound in production is forecast to bring an end to three straight months of contraction in manufacturing output.

Following this will be an independent estimate of UK economic growth over the previous quarter, which should show modest growth throughout the UK economy. Aside from this, investors will be largely focused on Europe, where the latest meeting of the European Central Bank (ECB) is likely to result in significant market movement should they adjust their monetary policy as is widely expected.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted March 4th, 2016 by Charles Purdy

Sterling one of this week’s top improvers

A largely positive week for sterling has seen the currency unwind recent losses against both the euro and US dollar. This was despite a succession of poor data released from the UK which didn’t meet expectations. Having come under significant pressure over previous weeks, sterling fell to a fresh seven-year low against the US dollar on Monday morning, before finding support on the back of belief that the risks of a ‘Brexit’ from the EU may have been overstated. Sterling continued to improve throughout the week, despite purchasing managers’ index (PMI) data from the manufacturing, construction, and services industries all disappointing. The figures were still in positive territory but at lower levels than the previous month. Five straight days of gains for sterling against the euro came to an end on Thursday as the single currency found support across the board, although sterling still remains well above the 14-month lows experienced at the end of February.

A quiet day for UK economic data releases in the markets today, with attention turned to the US for the release of their latest non-farm payroll figures. This figure can have a significant effect on markets, and will be keenly awaited by investors.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted March 3rd, 2016 by Charles Purdy

Surprise recovery for sterling

Sterling strengthened on Wednesday, despite Purchasing Managers’ Index (PMI) data from the construction industry pointing to a further slowdown in UK growth. Following a week of gains against the euro, sterling came under pressure throughout early trading, ahead of the release of these PMI construction industry figures. Despite this data falling short of expectations, sterling found strength from investor focus being trained on the announcement of services growth figures. Sterling continued to strengthen throughout the afternoon, hitting a one-week high against the US dollar and a two-week high versus the euro. With recent falls in sterling strength driven by movements of its major currency pairings and fears over the potential after effects of a Brexit from the EU, this recent recovery could be put down to a re-assessment of the feasible implications that exiting the EU would have on the UK economy.

Despite the breadth of the recovery seen by sterling this week, today’s PMI data from the services industry will be key to sustaining the current levels. Should we see another miss in the PMI figure, sterling could fall again.

Sterling is creeping back up against its major counterparts, but sudden rate movement is likely to continue over the coming months. Contact your trader for the latest rates and news of what currency risks are posed by the uncertain markets.

Posted March 2nd, 2016 by Charles Purdy

Key PMI data out from UK today

Sterling strengthened for a second successive day against both the euro and US dollar, even though February saw the slowest rate of growth in the manufacturing industry since 2013.

The disappointing growth data did see sterling slip first thing but as the day wore on sterling bounced back. The pounds recovery seemed to be centred on the belief that the result of a UK exit from the EU would not be as catastrophic as many pundits have suggested. Sterling even hit a fresh one-week high against the euro.

Today sees the release of Purchasing Managers’ Index (PMI) data from the construction industry. Following the immediate downturn for the pound in the wake of yesterday’s manufacturing PMI, investors will be keenly awaiting today’s release.

Posted March 1st, 2016 by Charles Purdy

Will sterling see another positive day?

Yesterday was a better day overall for sterling as it saw positive movement, by the end of the day, across the board despite falling to a fresh seven-year low against the US dollar throughout morning trading.

With limited economic data released from around the globe, sterling fell throughout morning trading as a fresh poll put the campaign to leave the EU ahead by 52% to 48%. Although ‘Brexit’ sentiment drove much of the market movement throughout Monday, pushing sterling to a fresh seven-year low against the US dollar, sterling was able to recover somewhat towards the end of the day as the euro came under selling pressure across the board. This negative euro movement also impacted sterling against the US dollar, pushing the pound away from multi-year lows, to finish the day in a strong position.

Today sees the release of Purchasing Managers’ Index (PMI) data from the manufacturing industry, which is expected to show a modest level of growth throughout January with exports benefitting from the weaker pound.

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