A steady day for sterling yesterday | Smart Daily Currency Note
GBP/USD – 1.5832
Surprisingly yesterday turned out to be somewhat of a muted day for sterling, despite the release of key unemployment data and David Cameron’s much anticipated press speech regarding the UK’s current stance on EU membership. As had been widely expected, Cameron outlined his stance on a potential referendum in 2017, however support for continued membership remains strong across the continent, helping to minimise any detrimental effect UK-EU severance could have upon sterling. With the Monetary Policy Committee Meeting Minutes coming out as expected yesterday – no votes in favour of a change to interest rates and one member voting in favour of increasing the current the level of quantitative easing. Out today we have the number of new mortgages approved and figures showing the relative level of current sales from a survey of retail and wholesale companies. Traders will now turn their focus to Friday’s fourth quarter GDP release which will give a clear insight into the current level of economic health in the UK. Call in now for the latest news and to get a live price from your trader.
It was another mixed day for the US dollar yesterday as price action took its lead from data released across Europe. Yesterday evening the House of Representative voted in favour of suspending the Debt ceiling limit until May 19 to avoid a default in the short term. This bill now needs to get passed to the Senate for approval. Today sees the release of the weekly unemployment claims report which traders will pay close attention to as it shows the current labour-market conditions that are highly correlated with consumer spending and furthermore, significant due to the Federal Banks recent stance that monetary policy will remain ultra-loose until the labour sector recovers. Call in today for a live rate from your trader.
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