Sterling suffering badly as temperatures soar | Smart Daily Currency Note
GBP/USD – 1.489
A very tough end to the week for sterling, struggling as the US dollar stole the limelight. An ailing sterling dropped below 1.49 and 1.16 against the US dollar and euro respectively on Friday and after a fantastic weekend for British sport, we will have to see how the British currency fairs through the course of this week. The next five days is devoid of data from the UK save for manufacturing production figures released on Tuesday. Given the strength of the manufacturing figures released last week, we anticipate good news. Whether that will be enough to give sterling a helping hand to find some strength again remains to be seen. Get in touch for the latest news and up to the second rates for sterling.
The US dollar soared on Friday, gaining a cent as employment data beat expectations. Markets saw this as a sign that the times are indeed ripe for tapering down loose monetary policy, and drove dollar to below 1.49 against sterling. This week the excitement continues – while the first half of the week is quiet for data, expect volatility to remain as traders place their bets ahead of the release of the minutes from this month’s FOMC meeting on Wednesday. Committee Chairman Bernanke speaks as well, and markets will hope that together they clear up speculation over the end of quantitative easing. More employment figures are released on Thursday, and inflation numbers on Friday so the question is; can the US dollar hold on – will it stay below 1.50? Call your trader now to find out.