Respite for sterling, will it be all too brief? | Smart Daily Currency Note
GBP/USD – 1.5753
Yesterday proved to be a stronger day for sterling than we have seen recently, managing to halt its continued declines versus many of its major trading peers. News that one of the Bank of England’s policy makers suggested that the UK’s economic growth is likely to grow between 2 to 2.5 per cent over the next 18 months – considerably higher than previous estimates – helped support sterling and see it increase from a five month low versus the US dollar. It was also a better day versus the euro, with sterling rising for the first time in four days, returning above the key 1.1700 level at one stage. Today we see the release of data showing the net lending to individuals and statistics demonstrating the number of new mortgage approvals which will provide an insight into the current levels of consumer spending and their confidence in the UK’s economy. Early suggestions are for a slight improvement, so call in now for the latest news and to get a live price.
It was a difficult day for the US dollar yesterday as a combination of considerably worse than forecast US Consumer Confidence and increasing global risk appetite decreased demand for the traditionally safe-haven currency. Continued improvements in global economic sentiment – most notably across the Eurozone – saw the US dollar fall to a 13-month low versus the euro, whilst also failing to continue its recent rise versus sterling. Today sees the release of key employment data, this is likely to give a clear insight into the current levels of economic health in advance of the official Non-Farm Employment data being released on Friday. The FOMC will be making a statement today following its latest decision on Monetary Policy. Furthermore, we also have the advanced GDP figures for the fourth quarter of 2012 released. Expectations are for a significant decline from the last release; but, are expected to show growth of over 1%, so call in now for the latest news and the see how this will impact the US dollar.
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