Smart Daily Currency Note | Inflation data released today, how will it affect sterling?
GBP/USD – 1.6197
In a day that was quiet on data from the UK, sterling climbed gently against most of its major pairs reaching a two month high of 1.62 against the US dollar. Against the euro it stayed very close to 1.23 for most of the day. Today, however, is likely to see a great deal more volatility. Significant inflation data is released this morning; last month saw targets overshot by almost half a percent, and sterling reacted favourably, bucking an otherwise downward trend. With instability reigning elsewhere, positive sentiment may paint sterling as a safe haven. Traders will also be looking forward with anticipation to tomorrow’s release of the minutes from this month’s monetary policy meeting as some expect that the panel may, for the first time in well over a year, have been split on the best monetary policy. Get in touch now for the most up to date pricing.
The US dollar struggled yesterday as traders remain cautious about the looming fiscal-cliff situation. Rumours started to circulate that the Republicans and Democrats were approaching some form of an agreement; but, alas no deal has been made to-date. Manufacturing data from New York came in much worse than expected showing a sharp drop in activity in December. Today we will see the release of Current Account data which is directly linked to currency demand and the forecasted conditions on future Housing Market Index that is currently expected to bring a negative outlook. Call in to see how this will affect the dollar and get a live price from our traders.