Cyprus back from the brink | Smart Daily Currency Note
GBP/USD – 1.5221
Sterling had a mixed day on Friday, falling from its five week high against the euro, as an injection of confidence into the 17 nation currency came as a result of Cyprus moving closer to reaching a bailout agreement. It is a fairly quiet week on the data front in the UK with the main release being the quarterly release of current account statistics, showing the difference in value between imported and exported goods, which will undoubtedly have an impact on the markets. Other data released this week includes a raft of housing related data including the monthly change in the number of new mortgages approved for home purchase and the change in the selling price of homes with mortgages. We also have the Chancellor speaking, the Bank of England’s quarterly report on the current level of credit in the UK and the final GDP reading for the fourth quarter of 2012 which is expected to show a contraction of 0.3%. This, combined with the developments in Cyprus, is likely to make it an interesting week for sterling. Get in touch for the latest rates.
The US dollar ended last week fairly poorly as it lost ground against the majority of its major peers on Friday. Most notably significant ground was lost against the euro and the rate managed to rise back above 1.30 for a brief period. There was no significant data released affecting the currency directly so its performance was largely defined by developments in the UK and the on-going situation in Cyprus and the waning of risk aversion, which had previously swept the market. However, this week sees a number of events concerning the world’s largest economy, which are likely to impact on the US dollar’s performance. The Chairman of the Federal Reserve will be coming to London early in the week to take part in a panel event and his words are likely to affect trading. Additionally, a variety of other data is set to be released throughout the week including figures concerning home sales, consumer confidence and unemployment claims. Call in now for live rates and up to date information.