Sterling slowly loses ground | Smart Daily Currency Note
Sterling had a strong start to the day, rising to a ten-week high against the US dollar as an industry report showed UK house prices to have increased for the first time to levels last seen before the recession. Come the afternoon and overnight sterling lost ground. Sterling still remains supported from last Thursday’s growth figures, a dampened expectation that the Bank of England will boost stimulus measures and a renewed optimism for small businesses to take advantage of the revamped Funding for Lending scheme. However the benefits have been short lived and sterling has lost short term momentum. Data released today includes the net lending levels to individuals and mortgage approvals figures. Call in now to see how sterling reacts and for a live price from the market.
The US dollar struggled yesterday as the markets anticipate that the Federal Bank will remain on its current monetary stimulus program come Thursdays central bank meeting. Data released yesterday showed a better than expected reading for the number of homes pending sale; however, Februarys figure was revised downwards painting a mixed picture in the housing market. Other reports yesterday showed personal spending slowing last month – in line with a recent slew of weak data coming from the US, as incomes increased less than forecast and inflation cooled to the lowest level in more than three years. Today sees the release of consumer confidence data which is expected to provide some better news at last. The US dollar remains weak after the disappointing first quarter GDP figures; but with a busy week ahead, the potential for volatility remains high. Call in for the latest developments and prices.