Sterling continues to fall | Smart Daily Currency Note
(Last week) This week
(GBP/USD – 1.5511) GBP/USD – 1.5253
On the whole a disappointing week for sterling – strong retail sales figures early in the week were encouraging signs for the British economy, giving sterling a short boost, but it has slipped away since. Key to driving this decline was two further members of the monetary policy committee calling for a looser monetary policy to stimulate growth in the country. Yesterday, the Office for national statistics revised their figures from last year to say that growth was substantially lower than previously thought, but, Britain did not see the two consecutive quarters of negative growth which would indicate a double dip recession. The focus for the next few days is undoubtedly going to be Mark Carney’s entrance as new Governor of the Bank of England. While he has made it clear that there is no panacea for British economic woes, great expectations rest on his shoulders. Call your trader today for the latest news and rates for the UK and sterling.
The US dollar has enjoyed a very strong week – reaching 1.30 against the euro and 1.52 against sterling at its peak. The Chairman of the Federal Open Market Committee kick started the trend with the announcement last Friday that stimulus programs will be tapered out. Positive data from the States helped the US dollar to strengthen further still, indicating a healthy recovering economy. This trend of dollar strength continued in spite of GDP figures being revised down from initial expectations showing growth was only at 1.8%, a long way shy of the 2.4% that had initially been anticipated. Speak to your trader for up to the second rates, and the latest market news.