A poor end to the week for sterling | Smart Daily Currency Note
GBP/USD – 1.4936
Sterling continues to be one of the weakest currencies with little support from investors. Strong employment data from the States on Friday afternoon saw sterling rapidly lose over 1 cent , ending up close to 1.49. This week could well be a similar story, with little UK data being released that will really influence the value of sterling so expect rates to be driven by news from elsewhere. The big day for UK economic data is Tuesday when manufacturing and industrial production figures are released. A sharp drop off in growth is forecast, in line with the recent Purchasing Manager Index figures. Trade balance figures are also released on Tuesday and are not forecast to change, so little market reaction is expected. Get in touch now for the latest news and up to the second rates.
It was a completely different story for the US dollar on Friday as employment data vastly exceeded expectations, showing a 0.2% decrease in unemployment. The US dollar jumped over a cent on the news, driven in part by the implication that a rise in interest rates might be closer than we thought as the labour market is recovering faster than expected. Given the dramatic shift on Friday, expect the eyes of the markets to be focussed on Thursday’s weekly unemployment figures . Both the retail sales figures and the Purchasing Price Index are expected to improve on the previous month highlighting that the recovery Stateside is gathering momentum. We should expect the US dollar to at least hold its ground. With trading opening below the key 1.50 level against sterling in asian markets, the question this week is whether it stays there. Call in now for an update and the latest prices.