Sterling steady before UK manufacturing data | Smart Daily Currency Note
GBP/USD – 1.558
Having enjoyed a successful last few days, sterling traded slightly higher against the US dollar and slightly lower against the euro in what was a quiet start to the week for currency markets. There have been increasing signs that the British economy is recovering – not least due to rising house prices and positive data from the manufacturing, construction and service sectors. Investors will be looking to UK manufacturing production data emerging this afternoon to influence the market further, whereby more positive news will add to speculation that the UK’s asset purchase programme could be reduced this year or at least not expanded further as Mark Carney takes over at the Bank of England. Talk to your trader now for all your currency requirements and reaction from the markets.
General US dollar strength early on Monday was aided by rating agency Standard and Poor’s upgrading the country’s AA+ credit rating from negative to stable based on receding fiscal risks. A string of positive data recently has boosted the dollar’s performance as the world’s largest economy begins to take more significant steps towards economic recovery. One of the members of the Federal Open Market Committee suggested that the country’s asset purchase facility would not be tapered back in the near future despite positive labour market data last week, pointing out that relatively low inflation data means that any tapering of the programme may be significantly delayed. How this new clarity from central bank members impacts the markets ahead of the interest-rate meeting taking place next week remains to be seen, with little significant data emanating from the US today. Call Smart now for up to date information and to see how the market reacts.