Sterling still has no friends and continues to weaken | Smart Daily Currency Note
GBP/USD – 1.5852
It was very much a mixed day for sterling yesterday, remaining distinctly range bound versus its major peers in the morning, before continuing last week’s trend and losing further ground later on in the day. Ever increasing speculation that the impending Monetary Policy Committee meeting minutes will reveal increased expectation of fourth-quarter contraction in GDP, coupled with an expectation for a future inflation rise continued to dampen demand for the British currency. Having gradually approached 1.59 versus the US dollar by mid-morning, sterling lost ground falling to just above 1.58 by early evening. There has been a slight rebound this morning pushing up towards 1.585. It was a similar story versus the euro, touching a 10-month low at 1.1870 yesterday and falling even lower overnight. Despite this negativity for sterling, UK stock markets have rallied with the FTSE 100 reaching a 5 new year high. The main data released today sees the latest figures for Public Sector Net Borrowing, along with Industrial Order Expectations – likely to give a clear indication into the strength or lack of it of UK economic health. Should these come out worse than forecast, it is likely that sterling will continue to decline, so call in now for the latest news and a live price from your trader.
The US dollar traded in fairly narrow ranges yesterday with US markets closed in observance of Martin Luther King day as well as President Obama’s inauguration ceremony – trading volumes were noticeably reduced as a result. That being said, the US dollar did manage to strengthen to a near five-month high versus sterling whilst also weakening against the Japanese yen from its strongest level since June 2010 as the Bank of Japan started its two-day policy meeting in Tokyo. With businesses returning to work today, many eyes will be on the release of Existing Home Sales data – forecast to improve slightly – which will give a clear indication into the current level of economic health in the country. Call in now to see how this will affect the dollar and to get a live price from your trader.
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