Sterling under pressure | Smart Daily Currency Note
GBP/USD – 1.5220
It just shows how things can change so quickly. After a steady week sterling lost over a cent against the euro and the US dollar late Friday as it was announced that Fitch joined Moody’s downgraded UK government debt in stripping the UK of AAA status based on the weak economic environment. Further rapid movements can be expected this week as we await Thursdays announcement of UK growth figures for the first quarter of this year. The median forecast is for slight growth of 0.1% – narrowly avoiding the ominous triple-dip recession; however, the overall consensus is far from clear and analysts remain split as to whether or not the UK will officially fall back into recession. Any deviation from the 0.1% increase will undoubtedly affect sterling’s value. Call in now for the latest news and an up to the second quote.
The US dollar held a fairly constant trajectory just before the weekend, whilst seeing significant gains against sterling. There are a number of interesting pieces of data coming out of the US this week. Today and tomorrow we will see the release of home sales data, a leading indicator of economic health, the outcome of which will be reflected in the market. Later on in the week we have durable goods, unemployment, and GDP data released on Wednesday, Thursday and Friday respectively. All data will be influential on the market so call in now for up-to-the-minute rates.