3 week lows for the Pound

10 October, 2013

Tom Arnold

Those of you who read yesterdays report will see that our expert analyst Paul Newfield was on the money when he stated that a string of recent positive UK data releases was the main driving force behind the recent sterling strength and that poor data could see the Pound slip away. Well yesterday that’s exactly what happened. Poor manufacturing and industrial figures (all missing their expectation) and a slightly lower GDP estimate saw the Pound go into free fall hitting 3 week lows against both the dollar and Euro. Fed minutes didn’t really make any difference when they were announced early in the evening with no surprises and most of the committee sitting on the fence when it comes to their QE policy.

Today we have the BoE interest rate and Bond Buying announcement at midday. I wouldn’t really expect anything of interest to arise from this but you never know in these fickle markets when a surprise is around the corner. It will be more interest to see the minutes later on in the month to see if the few poor data release we have seen over the past week have tempted any of the members to change their stance on policy.

Any of you who have been holding out for that ‘slightly better’ rate should take note of the movements yesterday. Often when a currency fails to push higher it is because it’s quite frankly run out of steam and reached its peak. Also the journey downwards can somewhat gather pace, so if you do have any near term requirements do get in touch with your account manager here at Currency Index