Is sterling set for further weakness? | Smart Daily Currency Note
GBP/USD – 1.497
After being pushed against the ropes overnight on Sunday – dropping to the lowest it has been since early March – sterling gained a little ground back against the dollar yesterday, pushing back above 1.49 again. The International Monetary Fund releases its World Economic Outlook today, with analysts saying it is likely that the UK will undo its recent downgrade and be forecast 1% growth in the next year. Key to that success will be the manufacturing sector, from which production figures are released this morning, with the expectation being that we will see growth return after a disappointing month. As long as the underlying data shows that recovery in the UK is gathering pace we can expect the pound to at least hold its own – if it goes the other way there is certainly room for even further weakness. Call in today for more news and up to the second rates for sterling.
After soaring to 4-month highs overnight, the US dollar had a fairly lacklustre day’s trading; losing ground to most major peers as speculation grew that it had gained too much. Between now and Wednesday’s release of minutes from this month’s Federal Reserve meeting exchange rates are likely to be driven by risk sentiment. Yesterday saw positivity growing – good news for the more risky currencies, bad news for the US dollar – so there is potential for some weakening for the US dollar. Nonetheless, with the labour market appearing to grow, and Wednesday’s announcement expected to further clarify plans to end the current ultra-loose monetary policy the outlook is largely positive for the US dollar. Get in touch today for the latest rates and news.