No support for sterling, further weakness expected | Smart Daily Currency Note
GBP/USD – 1.5702
It was a hugely disappointing end to the week for sterling, suffering heavy losses versus all of its major trading peers and compounding the losses that have been on-going for the entire week. News that key Manufacturing Purchasing Managers Index (PMI) had come out worse than previously forecast further dampened demand for the sterling; culminating in the British currency falling to a 14-month low versus the euro, falling at one stage below 1.15 in the process. It was a similar story versus the US dollar, with increasing pessimism surrounding the UK’s economic recovery being a key factor in sterling falling from Thursdays 1.58 level and then falling below 1.57 overnight. This week sees a host of data released from the UK, with key Construction and Services PMI released early in the week, before attention turns to the Bank of England’s latest decision on levels of quantitative easing and the base interest rate. There will also be a commentary from the next BoE Governor Carney who will be testifying to the UK’s Treasury Committee about his appointment. Call in now for an update and to get a live price from your trader.
The US dollar had a mixed day on Frdiay as the US economy is already displaying a stronger start to the New Year than most of its competitors, as shown by the January jobs data which rose by 157,000. Furthermore, manufacturing PMI data and consumer confidence figures also beat market expectations; however, the overall employment rate has now risen to 7.9%. Service PMI data, trade balance data and the weekly unemployment claims data will be the main releases in what is otherwise a relatively quiet week in the US. Call in now to see how the US dollar is fairing and to get an up to date quote from the live market.
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