3 majors go head to head

5 February, 2014

Matthew Boyle

Yesterday saw a further continuation of losses for the pound following poor UK PMI data on Monday. It is the first time in recent weeks against the majority of currencies that we have seen the pound falter as in recent times all it has seen is positive data. Most notably it has now lost a cent against the dollar, also in part due to the recent US announcement of tapering, and over half a cent against the Euro. Perhaps unfortunate timing that the UK release poor data given that the Euro in recent weeks has been in part kept low by the flagging dollar. Certainly much if the market would have expected GBP>EUR rates to rise given the pressure of the USD weakness taken off the mix, and without doubt we could still see this occur.

It is likely that perhaps it is only this surprise poor result that has caused the slight drop in rates, and should we see positive UK data these losses could be reversed and in particular against the Euro we would expect to see significant gains.

Today is quite heavy for data as we see the 3 majors go head to head with Eurozone PMI and retail sales, UK services PMI and US non manufacturing PMI and mortgage approvals. It is likely we will see a fair deal of movement as the ongoing tussle continues so stay close with your Currency Index account manager should you have any upcoming currency transfers. As whilst the pound still benefits from excellent rates across the board – ZAR, THB and INR to name but a few, its current direction against the USD and EURO is unknown at the moment certainly following Mondays poor result. SO who will come out tops today in the battle of PMI and make gains? Speak to your Currency Index broker today – we can help you stay well informed and well ahead of the market.