No respite and no support for sterling as it continues to weaken | Smart Daily Currency Note
GBP/USD – 1.5786
A terrible start to 2013 for sterling losing five cents against both the euro and the US dollar. And this week saw this continue with sterling dropping below the 1.18 mark against the euro for the first time in 11 months, and falling to a five month low of 1.5750 against the US dollar. It has been a busy week in the UK, David Cameron’s much anticipated speech revealed plans for a referendum in 2017 on the UKs continued EU membership. Monetary Policy Committee meeting minutes revealed that whilst there were no votes in favour of a change to interest rates, one member voted in favour of increasing the current the level of quantitative easing. We had poor manufacturing data earlier in the week and yesterday’s figures showed that the relative level of current sales in January had fallen; but, by less than originally anticipated. Today’s main announcement sees the preliminary fourth quarter GDP figures released which will give a clear insight into the current level of economic health in the UK and is currently forecast to show that the economy contracted by 0.1%. If this figure is confirmed, it will put increased pressure on credit rating agencies to cut the UK’s gold plated AAA credit rating whilst putting added pressure on sterling. Call in now for a live rate and to see how this release could affect you.
The US dollar had a slow start to the week with US markets closed on Monday in observance of Martin Luther King day as well as President Obama’s inauguration ceremony. During the week the US House of Representatives voted in favour of suspending the Debt ceiling limit until May 19 to avoid a default in the short term. Sales of existing homes in the US came out worse than expected; but, the reading still left total sales in 2012 at the highest level in the last five years. The weekly unemployment claims report was much better than expected, reinforcing the sentiment that the labour market in the US is recovering. Today see’s the release of important residential data which will show the number of new homes sold in the last month. The US dollars seems to be performing well as Obama begins another four years in the Oval office, call in now to see how the US dollar is expected to fair over the coming months.
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