No mates sterling continues to fall | Smart Daily Currency Note
GBP/USD – 1.5868
It was once more a disappointing day for sterling on Friday, losing further ground against most major currencies as weaker than forecast key retail sales data heaped further pressure on the already fragile UK economy. One of the biggest moves of the day came against the US dollar, where sterling fell to its weakest level since mid-November, before gaining support just above 1.5850 in the late afternoon whist challenging the 1.1900 mark against the euro. The British currency also saw a steep decline versus the Indian rupee, falling almost 2 per cent to the lowest level since early December. Speculation surrounding Britain’s continued involvement in the 27-nation European Union was also rife, as excerpts released from David Cameron’s delayed speech suggest a referendum is increasingly likely. With no date yet confirmed for the speech, investors will be keeping a close eye on sterling, with any loosening of the UK-EU relationship likely to further dampen confidence in the currency. This week sees a host of data released from the UK, with key focus on the Monetary Policy Committee meeting minutes on Wednesday, before Friday sees the release of preliminary GDP data; forecast to show the economy is likely to have contracted in the 4th quarter of 2012. Call in now to see how this affects sterling and to get a live price from your trader.
The US dollar strengthened against sterling and the euro on Friday, finishing on 1.586 and 1.331 respectfully, this was in spite there being poor consumer sentiment data being released. Due to the national bank holiday the US dollar is set to have a slow start to the week; however, with a variety of data set to be released later in the week, we could see a lot of movement for the US dollar. Therefore, data to look out for is Tuesday’s Homes Sales data, Thursday’s weekly unemployment claims and data upon New Homes Sales coming out Friday. To find out the state of the US dollar and for a live market quote, call your trader now.
Get in touch now for a live price and to see if the US can avoid tumbling off the so-called fiscal cliff. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website