Smart Daily Currency Note | Poor data from the Euro zone doesn’t help sterling
GBP/USD – 1.6058
Sterling struggled again yesterday dropping to a near one month low against the dollar, and continuing its decline against the yen as increased risk appetite lent support to the so called safe haven currencies. Continued market worries about the threat of a UK triple dip recession also undermined sterling. With the spotlight on the UK’s economic health, today’s Trade Balance data takes on a greater importance than it might normally do. The gap between import and export values is expected to close somewhat after disappointing results last month. If it exceeds expectation we are likely to see sterling rally a bit. Get in touch for the most up to date price, and the latest news.
The US dollar performed well yesterday as risk aversion dominated the market, partly due to the message from the Bipartisan Policy Centre which said the US government will struggle to pay its bills by mid-February meaning there is less time to solve this problem than many realise. Little important data released today implies the market may stay stable; however, history shows that the currency of the world’s largest economy generally strengthens in January and February following a US election and this has been true to date. Crude oil inventories and a benchmark 10-year bond auction is the only data out of note in what is otherwise a quiet day for the US. Get in touch now for the latest news and rates.
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