Public Sector borrowing gives sterling a boost

This was enough to push the pound even higher against a basket of currencies including the US dollar as investors wary of a double dip recession took solace in sterling. The pound hit a 3 month high against the dollar touching 1.66 by late afternoons trade although against the Euro gains from the previous day were reversed slightly as there is still the worry the Bank of England may introduce another round of quantitative easing to help boost our economy.

Next week is fairly sparse for UK data releases with the key one being GDP on Friday. With plenty of data out in the Eurozone and US it could mean another volatile week for the pound so the recent gains as we have seen before could easily be reversed. If you have a requirement to send funds abroad, it could be worth getting a rate secured sooner rather than later to protect yourself against any further adverse movements; if you would like to discuss your options please contact us at Currency Index on 0800 043 2623 or 01923 725725.