Sterling Gains Off Germanys Losses

Yesterday was another day of no data to note for the UK, so we were left at the mercy of eco stats elsewhere to lay the way.

First off came the German current account and trade balance figures which fortunately for the buying the single currency, came out way below expectations at €18.4 billion compared to the expected €21.4 billion while exports also came in much worse than hoped with a figure of -3.3 percent in comparison to the expected -1.1 percent. So with things in Germany (and by default the EU) looking gloomy, the pound managed to take advantage and rallied against both the euro and the US dollar making a half-cent jump against both.

The pound managed to hold onto most of its gains against the euro over the rest of trade, while the dollar managed to claw them all back by the closing bell. The dollar was helped by better jobless claims figure along with comments from Fed member James “Jimmy” Bullard, who stated there are no undue inflation pressures at present, which could lead the path open for a rate hike next month, although he feels one is not needed yet. The dollar took heed and clawed back all the few pips of its previous losses to Sterling.

Today we have some UK data, at last, to ponder in the shape of industrial and manufacturing production figures, plus trade balance. The EU are holding an “Extraordinary Economic Summit” going on all day which could give some euro volatility if any statements are released. In the afternoon, with the US markets open, we have Canadian unemployment figures, US import/export data and a consumer sentiment index, with UK NIESR GDP estimate thrown into the mix. Any drop in the estimate will almost certainly cause the pound some hardship so with hat figure coming out at 3 pm, it may be prudent to secure any transfers early doors to avoid any risk.

Contact one of the Currency Index team now for some helpful guidance on your future transfer.