UK employment data boosts sterling | Smart Daily Currency Note
GBP/USD – 1.5666
A day of two halves for sterling yesterday, gaining nearly half a cent in the first two hours of trading as employment figures exceeded expectations. Markets reacted positively to the news, driving sterling briefly through the 1.18 mark against the euro. The momentum remained with sterling through the day against the US dollar, but it couldn’t hold on to its gains against the euro, slipping back to the 1.175 levels. Today the excitement will come from elsewhere in the world as little news is expected from the UK. The key question will be, can sterling keep climbing against the US dollar – call your trader now to find out.
The US dollar had a bad day losing ground across the board. For emerging market currencies such as the South African rand and the Indian rupee this seems to have been a “correction” following the significant gains made by the US dollar over the previous two days. Worries over when the Federal Reserve will discontinue their bond buying programme were the driver for the previous day’s gains. Elsewhere there was a continuance of the short term trend of US dollar weakness. Today we have the release of US retail sales figures which should give further insight into the state of the US economy and the likelihood of a reduction in the bond buying programme. Call in to see how the US dollar is faring today.