Pound continues downward trend

It has been an extremely turbulent week for the pound and a telling one for what’s to come in the next few months. Sterling’s downfall commenced last weekend when the EU referendum was given a date in June and Boris Johnson came out to support the Brexit which added some political friction between the mayor of London and the Prime minister David Cameron, this adds uncertainty to the UK’s relationship with the EU and also what the nations position will be in the after the vote is finalised. The Pound is also seemingly losing the battle against the Dollar as rates are descending to lows last seen 7 years ago. The Greenback is a considered a safe haven currency and is heavily invested in and with sentiment driving the market the Dollar is standing in strong whilst the Euro and Pound struggle to gain significant ground.

Data released favoured the Dollar, UK GDP figures were as expected at 1.9%, the Eurozone posted negative data as Consumer price Index fell 0.1% from the previous 0.4% and lastly supporting the Greenback came Durable goods orders from the US recording a positive figure of 4.9% from the previous -5.0% aiding the Dollars bullish push. Today the UK stays quiet with no data to report on. At 13.00 Germany release Consumer price index data and is projected to post a negative figure and later at 13.30 GDP figures are to be broadcast in the US.

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