The Sterling Show

Last week remained another positive one for the pound – after gains early in the week against both USD and EUR it flagged slightly during mid-week trading, losing some of the gained ground, around half a cent against EUR and almost a cent against USD. However by the end of the week’s trading GBP was back to strength despite slightly poor retail sales on Thursday. With GBP sentiment riding high and news that the FED cut its growth fore cast from 2.8-3% down to 2.1-3% this year the pound pushed on and reached a new 5 year high against the greenback. Whilst against the EUR the by the end of the week the pound had clawed back much but not all of the lost ground, still close to a 2.5 year high though for those buying the single currency.

Indeed Sterling sentiment is riding high at present which will be interesting this week as we have one of the quietest weeks in some time in the way of data of note. Despite USD GDP on Wednesday, for the majors it seems like it is the “Sterling Show”. And so with GBP sentiment riding high and with an absence of data the majors can fight back with further positive data from the UK could see it continue its onslaught, particularly against the single currency which has no data of note.

However, take note as should GBP data be weak, this could easily unbalance it given its recent run of good news and we could very well find recent gains eroded and trading levels shift back to where last week’s trading started.

Tue

08.30     GBP       Inflation Report Hearings

Wed

12.30     USD       GBP Annualized (Q1)

Thu

09.30     GBP       BoE Mark Carneys Speech

23.30     JPY         CPI data (assorted)

Fri

08.30     GBP       GDP (YoY and QoQ) Q1

Should you have any upcoming currency transfers to make speak to your Currency Index broker today for some friendly and professional guidance on how to get the most out of your currency exchange. CI offer a range of buying options to help you get the best rate, including forward contracts which are excellent ways to protect the rate particularly if you are buying property abroad. Currency Index can help you stay well informed and well ahead of the market.