Pound holding high above the water against little data due out

22 October, 2013

Rob Bastin

Monday was a relatively subdued day on the market ahead of a busy week for the major currencies. With little noteworthy data to report on, the Pound finished the day slightly lower against both the Euro and the Dollar. Today see’s the beginning of a raft of major data releases over the coming days so ensure that you are keeping in close contact with your account manager should you have any imminent requirements. At 9:30am the latest Public Sector Net borrowing figures for the UK will be released with analysts forecasting a drop from £11.4 billion down to £10.4 billion, which should be positive for the pound if these figures are released but be cautious over any higher results as a positive figure of £10.4 billion is still a bad situation when considered on its own, as is any positive figure with this reading. At 1:30pm al eyes will be back on the USA, with an unusually delayed data release for unemployment and non farm payrolls. The dollar is very much on the back foot at present after a tough month, which many could argue leaves the dollar with much to gain once we see any positivity in the up and coming data. The unemployment rate is expected to hold at 7.3% whilst the non farm payrolls is expected to increase from 169k to 180k, a figure that if achieved should see both the pound and the Euro lose ground against the greenback. This release is always one of the most volatile of the month so be prepared for a sharp turn around if the dollar data meets forecasts.