Smart Daily Currency Note | US dollar holds ground
GBP/USD – 1.5981
Yesterday proved once more to be a disappointing day for sterling as it crashed through the 1.20 level against the euro and continued to lose further ground versus its major peers. The damage of an increasingly pessimistic outlook for the UK economy further dampened demand for the British currency, whilst traders had been focussing on David Cameron’s now cancelled speech this morning where he was due to outline his plans on repatriating powers from the European Union. Yesterday eventually saw sterling fall below the key support level of 1.20 versus the euro – at one point touching 1.1953. This trend has continued this morning hitting lows last seen April 2012 – suggesting the currency could continue to fall considerably below this level. There was also disappointing news versus the US dollar, trending below the key 1.60 value for the second consecutive day; brought about mainly by the positive unemployment data emerging from America. The major data released from the UK this week has been Consumer Price Index (CPI) inflation data, remaining constant at 2.7%. Today sees the latest retail sales data, likely to give a clear insight into the current economic health of the UK. Should this data come out worse than forecast, we could easily see sterling’s decline pick up pace, so call in now for the latest news from your trader.
The Federal Reserve Chairman started the week with a speech warning that the fiscal cliff remains a threat to the US economy; in spite of this, the US dollar held its ground, pushing up through the week on the back of a series of good data releases. Retail sales brought positivity with results exceeding expectations, whilst strong employment data helped push the US dollar higher as unemployment rates are now so closely linked with monetary policy. Today sees the release of consumer economic sentiment data, which is forecast to rise, so expect the trend to continue as uncertainty surrounds the so-called “currency war”. Call our traders and see how the reveal of financial confidence among consumers will change the 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