US dollar under pressure | Smart Daily Currency Note
(Last week) This week
(GBP/USD – 1.5583) GBP/USD – 1.5689
On the whole an okay week for sterling. It held its own against the euro, lost a little bit of ground against the commodity backed currencies; albeit midweek it had made significant gains, and gained throughout the week against the US dollar. It seems to be more of a case of what is happening elsewhere than any key UK event. Worries over quantitative easing in the US and Japan are having a significant effect on emerging markets and also on stock markets. There is limited UK data released today so again it will be a case of influence from elsewhere. Call in now to see how sterling is faring today.
The US dollar has been under pressure this week as the debate on when the US will end their programme of quantitative easing dominates market thoughts. The Federal Reserve has made it clear that this is on the agenda and therefore it is just a matter of timing. This means that every piece of economic data released is examined in minutiae as commentators and investors try to forecast the likely start date. Yesterday’s retails sales data was more positive than expected which obviously helps the case for an early start date for Federal Reserve stopping their liquidity support. The key driver though will be employment and although it has stabilised we are still waiting to see a significant reduction in unemployment. Call now to see how the dollar is faring on the final day of the week.